RBI to withdraw Rs 2,000 currency notes; to continue as legal tender

New Delhi/Chennai: The Reserve Bank of India (RBI) on Friday said that it will withdraw the Rs 2,000 denomination banknote from circulation but it will continue as legal tender.

In a statement, the RBI said: “The 2,000 denomination banknote was introduced in November 2016 primarily to meet the currency requirements of the economy in an expeditious manner after the withdrawal of legal tender status of all 500 and 1,000 banknotes in circulation at that time.”

It also said that all banks shall provide deposit and/or exchange facility for 2,000 banknotes until September 30, 2023.

The RBI said it will withdraw all the Rs 2,000 banknotes as a part of its clean note policy.

According to the RBI, people may deposit Rs 2,000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch.

“Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions,” RBI said.

The central bank said in order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs 2,000 banknotes into notes 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 the public, all banks shall provide deposit and/or exchange facility for Rs 2,000 banknotes until September 30, 2023.

The facility for exchange of Rs 2,000 banknotes up to the limit of Rs 20,000 at a time shall also be provided at the 19 Regional Offices (ROs) of RBI having Issue Departments, from May 23.

“As witnessed during demonetisation, we expect the deposit accretion of banks could improve marginally in the near term. This will ease the pressure on deposit rate hikes and could also result in moderation in short-term interest rates,” Karthik Srinivasan, Senior Vice President Financial Sector Ratings, ICRA said.

According to the RBI, the Rs 2,000 denomination banknote was introduced in November 2016 primarily to meet the currency requirements of the economy after the demonetisation of Rs 500 and Rs 1,000 denomination currencies in circulation.

The objective of introducing Rs 2,000 banknotes was met once banknotes in other denominations became available in adequate quantities. And printing of Rs 2,000 banknotes was stopped in 2018-19.

The RBI said 89 per cent of the Rs 2,000 denomination notes have reached their life cycle end as they were issued prior to March 2017.

The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to Rs 3.62 lakh crore constituting only 10.8 per cent of notes in circulation on March 31.

It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirements of the public, the RBI said. – IANS

15 pc of $23 trillion global gold market now held in India: Report

New Delhi: While global forex reserves total around $12.5 trillion, the gold market is currently valued at $23 trillion, 15 per cent of which is held in India, according to...

SEBI bars US firm Jane Street from Indian markets, directs it to deposit Rs 4,843 crore

Mumbai: The Securities and Exchange Board of India (SEBI) has barred US trading entity Jane Street and three of its related entities from accessing the market, directing them to deposit...

How Jane Street rigged Indian stock market to make Rs 43,000 crore in options profits

Mumbai: In one of the biggest market manipulation cases India has witnessed in recent years, US-based trading firm Jane Street is under the scanner for allegedly using sophisticated strategies to...

NPAs of India’s banks decline to multi-decade low of 2.3 pc

Mumbai: The soundness and resilience of India’s scheduled commercial banks are bolstered by robust capital buffers, multi-decadal low non-performing loans and strong earnings, according to the RBI’s latest Financial Stability...

More Indians now invest in equities as financialization of household savings rises: SBI

New Delhi: The financialization of household savings in India has gained significant momentum as equities as percentage of household savings in the country has increased from 2.5 per cent in...

‘GoIStats’ mobile app launched for real-time access to official statistical data

New Delhi: The government on Sunday launched the 'GoIStats' mobile application that will help every stakeholder seamlessly access official data on the go. The initiative by the National Sample Survey...

Indo-Saudi economic ties get a major boost as Malabar opens its largest jewellery showroom in Riyadh

  RIYADH: Indo-Saudi relations got a major boost following the opening of the largest jewellery showroom by India’s Malabar Gold & Diamond Group in Riyadh recently. The opening of this...

India curbs jute imports from Bangladesh as dumping hurts local farmers and mills

New Delhi: India on Saturday decided to impose port restrictions, with immediate effect, on the import of jute and allied fibre products from Bangladesh to check influx of cheap, subsidised...

Sensex surges 1,000 points, banking and heavyweight stock gain

Mumbai: The Indian stock markets closed on a strong note on Thursday, with benchmark indices Sensex and Nifty surging over 1 per cent each, led by gains in banking and...

Saudi Arabia, Russia offer oil supply continuity for India amid Iran’s Hormuz uncertainty

New Delhi: For India, which reportedly holds crude reserves for 90 days, Saudi Arabia’s ability to reroute crude exports via the Red Sea offers a layer of supply continuity amid...

Lilavati Trust files Rs 1,000 crore defamation case against HDFC Bank CEO Jagdishan

New Delhi: In a major development, the Lilavati Kirtilal Mehta Medical Trust, which runs Mumbai's Lilavati Hospital, has filed a Rs 1,000 crore defamation case against HDFC Bank's Managing Director...

Silver hits fresh all-time high on MCX amid geopolitical tensions

Mumbai: Silver futures on the Multi Commodity Exchange (MCX) touched a new all-time high of Rs 1,09,250 per kilogram on Tuesday, as investors rushed to safe-haven assets amid rising tensions...

Read Previous

Congress slams govt for withdrawing Rs 2,000 banknotes from circulation

Read Next

Sri Lanka, UP to strengthen ties by promoting Ramayana, Buddhist trails

WP2Social Auto Publish Powered By : XYZScripts.com