Why has the RBI withdrawn Rs 2,000 notes?
The Reserve Bank of India (RBI) has decided to withdraw Rs 2000 notes from circulation. But the RBI announced on Friday that the existing notes will be invalid.
The central bank has advised the public to deposit the Rs 2000 notes introduced after the withdrawal of Rs 500 and Rs 1000 notes during demonetisation 6 years ago in their bank accounts and/or convert them into other denomination notes at any bank. Branch.
Why did RBI withdraw 2000 rupee notes?
The Rs 2000 note was introduced in November 2016 under Section 24(1) of the RBI Act, 1934, primarily with the objective of rapidly meeting the currency demand of the economy after the withdrawal of the legal status of the Rs 500 and Rs 1000 notes. With that objective accomplished, the Rs 2,000 notes were discontinued in 2018-19 once other denominations became available in sufficient quantity.
RBI issued most of the Rs 2000 notes before March 2017; These notes are now at the end of their estimated lifespan of 4-5 years. This value is not normally used for transactions; Besides, there are enough banknotes in other denominations to meet the currency requirements.
“In view of the above, it has been decided to withdraw Rs 2000 currency notes from circulation in line with RBI’s ‘Clean Note Policy’,” the RBI said.