New Delhi. The Reserve Bank of India has decided to demonetise the Rs 2,000 note. People have been advised to deposit these notes in banks or get them exchanged by September 30.
According to the release issued by the RBI, in accordance with the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw 2 thousand bank notes from circulation. 2 thousand bank notes will remain legal tender. He says that the same has been done earlier in 2013-14 as well.
Banks have been told not to issue Rs 2,000 notes anymore. At the same time, people can go to the banks and get two thousand notes exchanged. From May 23, Rs 2,000 notes can be exchanged for other notes to the extent of Rs 20,000 at a time. At the same time, there will be no limit with certain conditions for depositing in banks.
According to RBI, “People can freely deposit 2000 notes in their bank accounts and in the normal way under extant instructions and other statutory provisions. Apart from this, they can be exchanged for other notes at any bank branch. From May 23, banknotes of Rs 2,000 can be exchanged in any bank up to a limit of Rs 20,000 at a time.
According to the Reserve Bank, in November 2016, 2 thousand banknotes were introduced. Their objective was to meet the need of currency in the economy rapidly in the event of the withdrawal of legal validity of the bank notes of five hundred and one thousand rupees. The purpose of introducing the Rs 2,000 banknote was served once the other banknote became available in sufficient quantity.
In order to complete the process in a time-bound manner and to provide sufficient time to the public, all banks will provide deposit and exchange facilities for Rs 2,000 notes by September 30. At the same time, the facility of exchange will also be available in 19 regional offices of RBI.
Sources say that people need not worry. Rs 2,000 notes will remain valid even after September 30. The limit till September 30 has been fixed as RBI hopes that 4 months is enough time for people to exchange notes with banks. Most of the Rs 2000 notes in circulation will be returned to the banks within the stipulated deadline of 30 September.
RBI says that in 2018-19 the printing of 2 thousand bank notes was stopped. About 89 per cent of the two thousand banknotes were issued before March 2017 and are at the end of their expected life of 4-5 years. The total value of these banknotes in circulation has come down from Rs 6.73 lakh crore at its peak to Rs 3.62 lakh crore as on March 31, 2018. This is 10.8 percent of the total notes.
The apex bank says that it has also been observed that this denomination is not commonly used for transactions. Besides this, the stock of bank notes of other denominations is maintained sufficient to meet the currency requirement of the public.
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