On the 19th of May, 2023, the Reserve Bank of India released an official statement stating “in accordance with the Clean Note Policy”, it has decided to withdraw the Rs 2,000 denomination banknotes from circulation. The statement also read “To complete the exercise in a time-bound manner and to provide adequate time for the members of the public, all banks shall provide deposit and/or exchange facilities for Rs 2000 banknotes until September 30th, 2023”. To release the pressure on these banks, there would be 19 RBI Regional Offices (RO) which would also serve as exchange points till the 30th day of September.
The decision to withdraw Rs 2000 banknote from circulation does not change its legal status yet, it would still be a legal tender. “Members of the public can continue to use Rs 2000 banknotes for their transactions and also receive them in payment. However, they are encouraged to deposit and/or exchange these banknotes on or before September 30, 2023,”
The central bank has sent a directive to all the banks stating the instructions for the intricacies of the exchange and deposit of the Rs. 2000 notes in circulation, which are effective only till the 30th of September this year. There have been no further instructions as to what would happen if a person failed to do so within the deadline, i.e., post-October 1st, 2023.
After the stoppage of circulation of 25 paise coins in 2005 and Rs. 500 and Rs. 1000 notes in 2016, this is predicted to be a similar move by the RBI.