The Reserve Bank of India has announced that the facility of exchanging Rs 2000 banknotes will continue as usual. You can exchange these notes for other denominations up to a limit of Rs 20,000 at any bank, and the deadline for this is September 30, 2023.
Starting tomorrow, May 23, this new exchange limit will be implemented. No new Rs 2000 banknotes will be issued, but RBI has said the existing ones will continue to be accepted as legal tender, though it has not specified if the notes will be valid or not after September 30.
Let’s dive into why the RBI has made this decision.
This decision was taken in line with the ‘Clean Note Policy,’ under which the Rs 2000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act,1934, primarily to meet the currency requirement of the economy in an expeditious manner after demonetisation of the Rs 500 and Rs 1000 banknotes which were in circulation at that time.
The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of Rs 2000 banknotes was stopped in 2018-19.