Withdrawal of ₹2000 Denomination Banknotes from Circulation

The ₹2000 denomination banknote was introduced in November 2016 in accordance with Section 24(1) of the RBI Act, 1934. Its main purpose was to address the immediate need for currency in the economy following the withdrawal of legal tender status for all ₹500 and ₹1000 banknotes in circulation at that time. The printing of ₹2000 banknotes was discontinued in the fiscal year 2018-19, as the objective of introducing the ₹2000 denomination had been achieved and there was sufficient availability of banknotes in other denominations.

Thus, in accordance with the Reserve Bank of India’s “Clean Note Policy,” it had been decided by RBI vide circular bearing reference number RBI/2023-24/32 DCM(Plg) No.S-236/10.27.00/2023-24 dated May 19, 2023 that the ₹2000 denomination banknotes would be removed from circulation. To carry out this decision, a plan of action had been formulated according to which the option to deposit and/or exchange ₹2000 banknotes was accessible to the public until September 30, 2023.

Now, a decision has been made by RBI vide circular bearing reference number RBI/2023-24/64 DCM(Plg) No. S-1288/10.27.00/2023-24 dated September 30, 2023, to extend the arrangement for depositing or exchanging ₹2000 banknotes until October 7, 2023.

Banks are required to maintain daily records of the deposit and exchange of ₹2000 banknotes, as specified in the circular dated May 22, 2023. These records should be submitted to the RBI regularly.

Starting October 8, 2023, banks will no longer accept ₹2000 banknotes for depositing into accounts or exchanging them for banknotes of other denominations. The ₹2000 banknotes will still be accepted at the 19 Regional Offices of RBI with Issue Departments (RBI Issue offices) for the purpose of crediting the funds to bank accounts in India or exchanging them.

Banks are required to ensure that ₹2000 banknotes collected by their branches are deposited at currency chests no later than October 13, 2023, with the deadline for collection being October, 7, 2023. ₹2000 banknotes shall continue to be legal tender. For customer/public information, the Press Release may be posted in the banking hall, ATM kiosks, etc.