Exchange your ₹2000 notes from 23rd May - Here's all you need to know

The Reserve Bank of India has withdrawn ₹2000 notes from circulation. Why was this done? And what does this mean for the ₹2000 notes that you have? RBI has issued a list of frequently asked questions that outlines all that you need to know.

Why are ₹2000 notes being withdrawn?
The ₹2000 notes were introduced in November 2016 with the objective to meet the currency requirement of the economy after ₹500 and ₹1000 notes were withdrawn as legal tender.

Once notes of other denominations became available in adequate quantities, the printing of ₹2000 notes was stopped in 2018-19. Most of the ₹2000 notes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years.

RBI also says that this denomination is not being commonly used for transactions and that currently, there is adequate availablity of other currency notes.

What is RBI's Clean Note Policy?
The withdrawal of ₹2000 notes from circulation has been done in view of RBI's clean note policy. This policy ensures availability of good quality banknotes to the public.

What should you do with the ₹2000 notes you hold?
First, its important to know that the ₹2000 notes will continue to be legal tender. Here's what you need to know about exchanging or depositing you ₹2000 notes.

1. RBI says that while ₹2000 notes can continue to be used for transactions, people are encouraged to deposit/exchange these notes before 30th September 2023.

2. The notes can be deposited and/or exchanged at any bank branch as well as the 19 Regional Offices (ROs) of RBI having Issue Departments1. This facility is being made available from 23rd of May until September 30th, 2023. No fee will be charged for availing this facility.

3. Limit for exchange: ₹2000 notes worth ₹20.,000 can be exchanged at one time.

4. There is no restriction on deposits, but it is subject to compliance with KYC and other statutory requirements.
   
   
5. A non-account holder also can exchange ₹2000 banknotes up to a limit of ₹20,000 at a time at any bank branch.