The Reserve Bank of India (RBI) has decided to withdraw the ₹2,000 note after it was introduced during the country’s demonetisation drive in 2016.
Here’s everything you need to know about why the currency note is being pulled and how to exchange any ₹2,000-rupee notes you might have lying around.
Why Was The ₹2,000 Note Withdrawn?
The ₹2,000 note was introduced in 2016 to get cash quickly into the hands of the Indian public after notes of smaller denominations had been withdrawn at the time.
In 2018-2019, the production of ₹2,000 banknotes came to a halt. It has also been observed that these notes were not commonly used for everyday transactions. Further, the supply of banknotes in other denominations is enough to meet the currency needs of the public.
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So the RBI has decided to withdraw the large currency note from circulation under its Clean Note Policy, which aims to ensure good-quality currency notes are available to the public.
Are ₹2000 Notes Still Legal Tender?
The ₹2,000 note is still legal tender and can be used for everyday transactions. However, citizens have been encouraged to exchange them starting May 23.
How To Exchange The ₹2000 Note And By When
The general public can exchange ₹2000 notes at any bank branch, whether or not they hold an account at the bank. Notes can be exchanged at any bank until September 30.
The note can also be exchanged at the 19 regional offices (ROs) of RBI that have issue departments within the same timeframe.
Is There Any Special Procedure Or Exchange Fee?
Exchanges can be made in the usual manner without restrictions. State Bank of India on Sunday announced that it would allow customers to exchange ₹2,000 notes without identification or a requisition slip for amounts up to ₹20,000. Other banks are also likely to follow suit.
There is no exchange fee required for the transaction.
Is There A Limit To How Much You Can Exchange?
While there is no overall limit to how much an individual can exchange as long as know-your-customer rules are followed, citizens can only exchange a sum of ₹20,000 per day.
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