Report Writing 2023-24, Withdrawal of 2000 Currency Note from Circulation

The Reserve Bank of India (RBI) announced on May 19, 2023, that it would withdraw the Rs 2,000 currency notes from circulation. However, these ₹2,000 notes will still be considered legal tender. Individuals can either deposit the existing notes in their bank accounts or exchange them until September 30.

To ensure smooth operations and avoid disruptions in bank activities, the exchange of ₹2,000 notes for banknotes of other denominations can be done at any bank, up to a limit of ₹20,000 at a time, starting from May 23, 2023.

This decision was made in accordance with the RBI’s “Clean Note Policy.” A similar withdrawal of notes from circulation occurred in 2013-2014.

The ₹2,000 banknotes were initially introduced in November 2016 to promptly meet the current demands of the economy following the withdrawal of the legal tender status of all ₹500 and ₹1,000 banknotes at that time. It’s worth noting that the printing of ₹2,000 notes ceased in 2018-19. Presently, the stock of other denomination notes is sufficient to meet the general public’s currency requirements, hence the withdrawal of the 2000 currency note. Moreover, these notes have reached a lifespan of 4 to 5 years.

The public is advised to utilize the four-month period to change their notes in a patient and organized manner, without rushing. The RBI has provided a document containing Frequently Asked Questions (FAQs) on its website for the convenience and information of the public.