The RBI’s latest move to withdraw Rs 2,000 banknotes will have no immediate impact on the general public as they will get enough time to get them exchanged.

Mumbai: In a surprising move, the Reserve Bank of India (RBI) on Friday said it has decided to withdraw Rs 2,000 currency notes from circulation and said it will however continue to be a legal tender. Even as the banks have been advised by the RBI not to issue Rs 2,000 notes with immediate effect, the general customers need not worry as the withdrawal will be carried out in a ‘time-bound’ and systematic manner.
The central bank said it believes that four-month time is enough for people to exchange these notes at banks. Most of the Rs 2,000 notes that are in circulation are expected to return to banks within the given time frame of 30 September.
In the meantime, the central bank has advised banks to stop issuing Rs 2000 denomination banknotes with immediate effect.
The Rs 2000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time.
The RBI said the prime objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of Rs 2000 banknotes was stopped subsequently in 2018-19.
Will It Impact Common Man?
Interestingly, the RBI ‘encouraged’ the general public to deposit and/or exchange these banknotes on or before September 30, 2023. Simply putting things into perspective, the move to withdraw Rs 2,000 banknotes will have no immediate impact on the general public as they will get enough time to get them exchanged.
Krishnamurthy Subramanian (Former chief economic advisor) talked about the RBI scrapping circulation of Rs 2000 note and said the move will not affect the common man of the society.
#WATCH | London (UK): Krishnamurthy Subramanian (Former chief economic advisor) speaks on RBI scrapping circulation of Rs 2000 note. Says, “This step will not affect the common man of the society.” pic.twitter.com/VEgEG6jBnd
— ANI (@ANI) May 19, 2023
How To Exchange Rs 2,000 Notes?
The RBI said people will have the option to deposit Rs 2,000 banknotes in their bank accounts or exchange them for currency notes 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.
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