The Reserve Bank of India has decided to pull Rs 2000 crore notes from circulation. They will, however, remain legal tender. The masses have been asked to exchange them before September 30, 2023. The term legal tender means these notes can be used to purchase goods and services till the deadline. This was not the case in 2016.. At that time, the money was demonetised. This meant money wasn't legal anymore and wasn't allowed to be used. The only way forward in 2016 was to exchange the notes. This time, however, the notes will be allowed for purchase till the deadline.
RBI said the denomination wasn't being commonly used for transactions. The RBI found that the notes of other denominations were enough to meet the requirement of the country.
What next? This clearly means that Rs 2000 bank notes will have to be exchanged or deposited.
Those who have these notes will have to go to the banks and simply deposit these notes into their bank accounts. The value of these notes will be credited into their accounts. They can then withdraw this money as usual.
“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,” the RBI said.
RBI said that exchange and deposit of money will begin on May 23. Any customer can go to their banks during service hours and can get their money deposited or exchanged. The upper limit per transaction in this case is Rs 20,000.
The money can also be exchanged at RBI's Regional Offices that have issue departments.
Per RBI, the objective of Rs 2000 notes was met when the markets were flush with notes of other departments. The printing of these notes was stopped in 2018.
