Wondering why 2,000 bills are being withdrawn? Here we explain why. Also, know what you should do with the 2000 rupee notes you have.
Why has RBI withdrawn Rs 2000 notes?
According to the apex bank’s announcements, the Reserve Bank of India’s (RBI) Rs 2,000 notes will be withdrawn from circulation. The announcements also say that while these bonds will be discontinued, existing bonds will remain legal tender. Now the real question is: why did the RBI take this decision?
The reason
The Rs 2,000 notes were first received in the month of November, 7 years ago i.e. in the year 2016. These notes were introduced under section 24(1) of the Reserve Bank Act. India (RBI) 1934. The objective behind the introduction of such notes was to meet the monetary needs of the economy. The economy needed currency notes after the withdrawal of legal tender status of currency notes of Rs 500 and Rs 1,000 denomination. Once the 2000 rupee notes were in optimal quantity in the economy and the requirements were met, it was in the years 2018 and 2019 when the printing of 2000 rupee notes ceased.
Most of the Rs 2,000 notes were issued by the Reserve Bank of India before March 2017. Currently, these notes are on the brink of their end as per their estimated lifespan of 4-5 years. It is interesting to note that the denomination is not currently used as frequently for transactions, as there is a large stock of banknotes of other denominations in circulation.
: What is the cost of printing 200, 500 and 2000 rupee notes in India?
Take a look at what the Reserve Bank of India tweeted on May 19 and the accompanying press release.
₹2000 denomination notes: withdrawn from circulation; Will continue as a Legal Course https://t.co/2jjqSeDkSk
– ReserveBankOfIndia (@RBI)
May 19, 2023
The clean grades policy
The objective of the Clean Banknote Policy is to provide the public with good quality coins and banknotes, with improved security features. Politics has removed dirty banknotes from circulation. Previously, the central bank was ready to withdraw all banknotes issued before 2005 as they have fewer security features compared to current banknotes. However, this could not happen, since banknotes issued before 2005 remain legal tender.
What to do with the 2000 rupee notes you have?
The Reserve Bank of India advises people to approach bank branches to deposit or exchange any Rs 2,000 notes they have. The Reserve Bank of India states that the service of exchanging notes of Rs 2,000 denomination will remain available in all banks until September 30, 2023. This service will be available until September 30, as well as at 7:00 p.m. RBI regional offices. have Issuance Departments. : What is RBI e-rupee? Everything you need to know about CBDCs!
Categories: Optical Illusion
Source: ptivs2.edu.vn