Wondering why 2000 notes are being revoked? Here is an explanation why. Also, know what you have to do with the Rs 2000 note you have.
Why did RBI withdraw the Rs 2000 note?
According to the apex bank announcement, the Rs 2,000 note issued by the Reserve Bank of India (RBI) will be withdrawn from circulation. The notices also say that while these notes will be phased out, existing notes will still be legal tender. Now the real question is why did the RBI make this decision?
Reason
The Rs 2000 note was first welcomed in November, 7 years ago i.e. 2016. These notes were introduced under Section 24(1) of the Reserve Banks of India (RBI) Act, 1934. The purpose behind the introduction of such notes is to satisfy the monetary needs of the economy. The economy is in need of paper money after withdrawing the legal tender status of the Rs 500 and Rs 1000 bills. Once the Rs 2000 notes were in optimal quantities in the economy and the needs were met, by 2018 and 2019, printing of the Rs 2000 notes had stopped.
Most of the Rs 2,000 notes were issued by the Reserve Bank of India before March 2017. Currently, these notes have expired at an estimated 4-5 years. It is interesting to note that this denomination is not currently used much for transactions, as there is a large amount of banknotes of other denominations in circulation.
ALSO READ: How much does it cost to print 200, 500 and 2000 rupee bills in India?
See what the Reserve Bank of India tweeted on May 19 and the attached press release.
Banknotes denomination ₹2000 – withdrawn from circulation; Will continue to be legal tender https://t.co/2jjqSeDkSk
– Reserve Bank of India (@RBI)
May 19, 2023
Clean Notes Policy
The goal of the Clean Banknote Policy is to provide high-quality coins and banknotes with enhanced security features to the public. Politics has pulled dirty banknotes from circulation. Prior to that, Apex Bank was ready to revoke all notes issued before 2005, as they have fewer security features than today’s notes. However, this is unlikely, as banknotes issued before 2005 are still legally tender.
What to do with the Rs 2000 note you have?
The Reserve Bank of India advises people to go to the bank branches to deposit or exchange the Rs 2,000 note you have. The Reserve Bank of India stated that the facility to redeem the Rs 2,000 note will remain available at all banks until September 30, 2023. The facility will be available until September 30, as well as RBI’s 19 regional offices have issuance divisions. ALSO READ: What is RBI’s E-Rupee? Everything you need to know about CBDCs!
Categories: Trends
Source: newstars.edu.vn