2000 note Stop in 30 September
DCM(Plg) No.S-236/10.27.00/2023-24
May 19, 2023
The Chairman/Managing Director/ Chief Executive Officer All Banks
Dear Sir/Madam,
2000 Denomination Banknotes - Withdrawal from Circulation; Will continue as Legal Tender
*2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934 primarily to meet the immediate currency requirement of the economy after withdrawal of the legal tender status of all ₹500 and 1000 banknotes in circulation at that time. With fulfilment of the objective of introduction of *2000 denomination and availability of banknotes in other denominations in adequate quantity, printing of 2000 banknotes was stopped in 2018-19.
2. Further, majority of the 2000 denomination notes were issued prior to March 2017, have completed their estimated lifespan and are not observed to be commonly used for transactions anymore. Therefore, it has been decided that, in pursuance of the "Clean Note Policy" of the Reserve Bank of India, the 2000 denomination banknotes shall be withdrawn from circulation. The 2000 banknotes will continue to be legal tender.
3. Accordingly, to implement the decision stated above, the following plan of action has been formulated which, the banks shall follow meticulously:
A. Handling of existing stock and receipts
(i) All banks shall discontinue issue of 2000 denomination banknotes with immediate effect. ATMs/Cash Recyclers may also be reconfigured accordingly.
मुद्रा प्रबंध विभाग, केन्द्रीय कार्यालय, चौथी मंजिल, अमर बिल्डिंग, सर पी. एम. मार्ग, पोस्ट बॉक्स से 1379, मुंबई - 400001 (भारत) फोन: + 91-22-22603000/4000, फैक्स: +91-22-22662442: ई-मेल: cgmindcm@rbi.org.in Department of Currency Management, Central Office, 4th Floor, Amar Building, Sir P. M. Road, Post Box No. 1379. Mumbai-400.001(India): Tel: +91-22-2260 3000/4000 Fax: +91-22-2266 2442: E-mail: ogmincdcm@rbi.org.in
हिन्दी आसान है, इसका प्रयोग बढ़ाईए
May 19, 2023
2000 Denomination Banknotes - Withdrawal from Circulation; Will continue as Legal Tender
The 2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all *500 and 1000 banknotes in circulation at that time. The objective of introducing *2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, printing of 2000 banknotes was stopped in 2018- 19.
2. About 89% of the 2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. The total value of these banknotes in circulation has declined from 26.73 lakh crore at its peak as on March 31, 2018 (37.3% of Notes in Circulation) to 3.62 lakh crore constituting only 10.8% of Notes in Circulation on March 31, 2023. 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 requirement of the public.
3. In view of the above, and in pursuance of the "Clean Note Policy of the Reserve Bank of India, it has been decided to withdraw the 2000 denomination banknotes from circulation.
4. The banknotes in 2000 denomination will continue to be legal tender.
5. It may be noted that RBI had undertaken a similar withdrawal of notes from circulation in 2013-2014.
6. Accordingly, members of the public may deposit 2000 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.
7. In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of 2000 banknotes into banknotes of other denominations can be made upto a limit of 20,000/- at a time at any bank starting from May 23, 2023.
8. To complete the exercise in a time-bound manner and to provide adequate time to the members of public, all banks shall provide deposit and/or exchange facility for *2000 banknotes until September 30, 2023. Separate guidelines have been issued to the banks.
9. The facility for exchange of 2000 banknotes upto the limit of 20,000/- at a time shall also be provided at the 19 Regional Offices (ROS) of RBI having Issue Departments' from May 23, 2023.
10. The Reserve Bank of India has advised banks to stop issuing 2000 denomination banknotes with immediate effect.
11. Members of the public are encouraged to utilise the time up to September 30, 2023 to deposit and/or exchange the 2000 banknotes. A document on Frequently Asked Questions (FAQs) in the matter has been hosted on the RBI website for information and convenience of the public.
Press Release: 2023-2024/257
(Yogesh Dayal) Chief General Manager
