The Reserve Bank of India has decided to withdraw the Rs 2,000 denomination banknotes from circulation. However, the central bank has said that the currency notes will continue to be legal tender till September 30. RBI has asked banks to provide deposit and/or exchange facility for Rs 2,000 notes until September 30, 2023.

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The central bank has also asked banks to stop issuing Rs 2,000 notes with immediate effect. This change has been brought about in pursuance with RBI's “Clean Note Policy”, RBI said in its communique.

Also read - Bye bye, Rs 2,000 banknote! Key features of the bill that remained in circulation for just 6 years

 

Members of the public will be allowed to deposit Rs 2,000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch. 

However, RBI added that exchange of Rs 2000 banknotes into banknotes of other denominations can be made upto a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.

Also Read- Rs 2000 currency note ban: From "timely and prudent" to "first act, second think" — here's how industry and political parties reacted to RBI guideline

In order to faciltate the exchange of old currency, the RBI has instructed banks to make arrangements to reduce inconvenience to the senior citizens, persons with disabilities, etc., seeking to exchange/deposit Rs 2000 banknotes.

RBI said that it had undertaken a similar withdrawal of notes from circulation in 2013-2014.

What will banks do now?

RBI has asked all banks to discontinue the issue of Rs 2000 denomination banknotes with immediate effect. Banks have also been asked to reconfigure and recalibrate ATMs/cash recyclers accordingly.

Banks holding Currency Chests (CCs) have been told to ensure that no withdrawal of Rs 2000 denomination is allowed from the cash counters. And all balances held in the cash counters shall be classified as unfit and kept ready for dispatch to respective RBI offices.

All banknotes in this denomination received by the banks shall be sorted immediately through Note Sorting Machines (NSMs) for accuracy and genuineness and deposited in the currency chests under the Linkage Scheme or kept ready for dispatch to the nearest Issue Office of RBI.

The banks ahave also been told to remain vigilant regarding counterfeit banknotes and asked to detect, report and monitor counterfeit notes meticulously.