India to withdraw 2,000-Rupee notes from circulation

Shutterstock [For illustration]

India's central bank has announced that it will start withdrawing 2,000-Rupee notes from circulation, although they will remain legal tender.

People will be asked to deposit 2,000-Rupee banknotes in their bank accounts or exchange them for smaller denominations between May 23 and September 30, the Reserve Bank of India said.

They will be be able to exchange up to 20,000 Indian Rupees at a time, it added.

  • In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs. 2,000 banknotes into banknotes of other denominations can be made up to a limit of Rs. 20,000/- at a time at any bank starting from May 23, 2023.
  • To complete the exercise in a time-bound manner and to provide adequate time to the members of public, the RBI has asked all banks to provide deposit and/or exchange facility for Rs. 2,000 banknotes until September 30, 2023.

The Rs. 2,000 denomination banknote was introduced in November 2016, mainly to meet the currency requirement of the economy after the withdrawal of all Rs. 500 and Rs. 1,000 banknotes in circulation at that time.

The RBI said that the objective of introducing Rs. 2,000 banknotes was met once banknotes in other denominations became available in adequate quantities.

About 89 per cent of the Rs. 2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years.

It has also been observed that this denomination is not commonly used for transactions.

More from International

  • North Korea says latest satellite launch exploded in flight

    North Korea said its attempt to launch a new military reconnaissance satellite ended in failure on Monday when a newly developed rocket engine exploded in flight.

  • Israeli attack on Rafah tent camp kills 45

    An Israeli airstrike triggered a massive blaze killing 45 people in a tent camp in the Gaza city of Rafah, officials said on Monday, prompting an outcry from global leaders who urged the implementation of a World Court ruling to halt Israel's assault.

  • Over 2,000 could be buried in Papua New Guinea landslide, authorities say

    More than 2,000 people could be buried alive by a massive landslide in Papua New Guinea last week, the government said on Monday, as treacherous terrain and the difficulty of getting aid to the site raises the risk few survivors will be found.

  • At least 18 killed in US storms

    Powerful storms killed at least 18 people, injured hundreds and left a wide trail of destruction across Texas, Oklahoma and Arkansas after obliterating homes and destroying a truck stop where dozens sought shelter in a restroom during the latest deadly weather to strike the central US.

  • Cyclone Remal leaves millions without electricity

    Strong winds and heavy rain pounded the coastal regions of Bangladesh and India as severe cyclone Remal made landfall on Sunday, leaving millions without electricity after power poles fell and trees were uprooted by gusty winds.