Why RBI has withdrawn Rs 2000 notes, what you should


Why RBI has withdrawn Rs 2000 notes, what you should
Why RBI has withdrawn Rs 2000 notes, what you should 



The Reserve Bank of India (RBI) has recently made an announcement regarding the withdrawal of Rs 2,000 denomination currency notes from circulation. Despite this decision, the notes will remain valid as legal tender, as stated in a press release issued by the central bank.


Introduced in November 2016 under Section 24(1) of the RBI Act, 1934, the Rs 2,000 denomination currency note was primarily intended to swiftly address the currency demands of the economy following the discontinuation of the legal tender status of Rs 500 and Rs 1,000 notes. This information was conveyed in the press release


Is there a limit on the deposits of Rs 2,000 notes?


While there is a limit of Rs 20,000 for exchanging Rs 2,000 banknotes in one transaction, there is no specific restriction on depositing them into bank accounts. The Reserve Bank of India (RBI) has stated that deposits can be made without any restrictions, as long as the depositor complies with the existing Know Your Customer (KYC) norms and other relevant statutory/regulatory requirements.


Can Rs 2,000 banknotes be exchanged through Business Correspondents (BCs)?


Yes, it is possible to exchange Rs 2,000 notes through Business Correspondents (BCs) with a daily limit of Rs 4,000 per account holder.

From which date will the exchange facility be available?


Starting from May 23, 2023, individuals can approach bank branches, as well as the Regional Offices (ROs) of bank branches or the RBI, to exchange their Rs 2,000 notes. The RBI has requested the public to visit these facilities from that date onward to avail the exchange service. This request is made to allow banks sufficient time to make necessary preparations.


Can you exchange Rs 2,000 notes from any bank branch?


Yes, customers can exchange Rs 2,000 notes at any bank branch. The RBI has specified that even non-account holders can exchange Rs 2,000 banknotes, up to a limit of Rs 20,000 at a time, in any bank branch.

Why did the RBI withdraw Rs 2,000 notes?


The RBI provided a detailed FAQ, explaining the reasons behind the withdrawal of Rs 2,000 notes. According to the RBI, the primary objective of introducing Rs 2,000 notes in November 2016 was to quickly meet the currency requirements of the economy following the demonetization of old Rs 500 and Rs 1,000 banknotes.

Read more information go to RBI


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