New Delhi/Chennai | The Reserve Bank of India (RBI) on Friday said it will withdraw Rs 2,000 banknotes from circulation, though they will remain legal tender. The Rs 2,000 banknote was issued in November 2016, the RBI said in a statement. Its purpose was to meet the currency requirement of the economy rapidly after the demonetization of the 500 and 1000 rupee banknotes in circulation at that time.
It said that all banks will provide the facility of deposit and exchange of Rs 2,000 bank notes by September 30.
RBI said that Rs 2,000 notes will be withdrawn in line with the ‘Clean Note Policy’ of the Reserve Bank of India.
According to the central bank, people can deposit Rs 2,000 notes in their accounts or exchange them at any bank branch.
These can be deposited in bank accounts in the normal way without any limit, however, existing instructions and other provisions will be applicable, RBI said.
The central bank said that to keep the operations and regular functioning of bank branches smooth, only Rs 20,000 notes can be exchanged at a time from May 23.
In order to complete this work in a time-bound manner and to give sufficient time to the general public, all banks have been directed to provide deposit and exchange facilities for these notes by September 30, 2023.
According to the RBI, banknotes of Rs 2,000 denomination up to Rs 20,000 denomination can also be exchanged from May 23 at its 19 regional offices.
ICRA Senior Vice President (Financial Services Sector) Karthik Srinivasan said, as was seen during demonetization, banks will see an increase in deposits for some time in the coming days. This will reduce the upward pressure on deposit rates and softening of short-term deposit rates may be seen.
According to RBI, Rs 2,000 banknotes were issued in November 2016. Its purpose was to meet the currency requirement of the economy rapidly after the demonetization of the 500 and 1000 rupee banknotes in circulation at that time.
The purpose of issuing 2,000 bank notes was met after the adequate availability of other bank notes. Hence, the printing of Rs 2,000 bank notes was stopped in 2018-19.
The RBI said 89 percent of the Rs 2,000 banknotes were issued before March 2017 and are nearing the end of their estimated life of four-five years.
It said the total value of these banknotes in circulation declined from a peak of Rs 6.73 lakh crore (37.3 percent of all notes in circulation) as on March 31, 2018, to Rs 3.62 lakh crore (10.8 percent of all notes in circulation) as on March 31, 2023. ) It is left.
RBI said that now these notes are not commonly used in transactions. Besides this, notes of other denominations are available in sufficient quantity to meet the currency requirement of the people.
