Why did RBI stop 2000 notes?
You have time from May 23 to September 30 to deposit these notes in your bank account or exchange them for other denominations. But you can change only 10 notes at a time. But Why did RBI stop 2000 notes? let’s know.
Why did RBI stop 2000 notes?
The Reserve Bank of India (RBI) has decided to withdraw the Rs 2000 denotation bills from rotation. But being notes will continue to be legal tender, the RBI blazoned on Friday. The central bank has advised the public to deposit Rs 2000 bills, which were introduced after Rs 500 and Rs 1000 notes were withdrawn during the demonetisation exercise six times agone into their bank accounts and/ or change them into bills of other appellations at any bankbranch.
The Rs 2000 note was introduced in November 2016 under Section 24( 1) of The RBI Act, 1934, primarily with the ideal of meeting the currency demand of the frugality expeditiously after the legal tender status of Rs 500 and Rs 1000 notes was withdrawn. With the fulfilment of that ideal, and formerly notes of other appellations were available in acceptable amounts, the printing of Rs 2000 notes was stopped in 2018- 19.
The RBI issued the maturity of the Rs 2000 denotation notes previous to March 2017; these notes are now at the end of their estimated lifetime of 4- 5 times. This denotation is no longer generally used for deals; besides, there’s acceptable stock of bills in other appellations to meet currency conditions.
“ In view of the below, and in performance of the ‘ Clean Note Policy ’ of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denotation bills from rotation, ” the RBI said.
READ MORE-: Why did RBI stop 2000 notes?
And what is the Clean Note Policy?
The Clean Note Policy seeks to give the public good- quality currency notes and coins with better security features, while soiled notes are withdrawn out of rotation. The RBI had before decided to withdraw from rotation all bills issued previous to 2005 as they’ve smaller security features as compared to bills published after 2005. still, the notes issued before 2005 continue to be legal tender. They’ve only been withdrawn from rotation in conformity with the standard transnational practice of not having notes of multiple series in rotation at the same time.
So will the Rs 2000 banknotes continue to be legal tender?
The Rs 2000 bill will continue to maintain its legal tender status, the RBI has said. Members of the public can continue to use Rs 2000 bills for their deals and also admit them in payment. “ still, they’re encouraged to deposit and/ or exchange these bills on or before September 30, 2023, ” the RBI said.
What should you do with the Rs 2000 notes you have?
The RBI has advised people to “ approach bank branches for deposit and/ or exchange ” of these bills. “ The installation for deposit into accounts and exchange for Rs 2000 bills will be available at all banks until September 30, 2023, ” the RBI has said. The installation for exchange will also be available until September 30 at 19 RBI Regional services that have Issue Departments.
Is there a limit on how much money you can exchange or deposit?
You can change Rs 2000 bills up to a limit of Rs 20,000 at a time. You do n’t have to go your own bank — anon-account holder of bank also can change Rs 2000 bills up to a limit of Rs 20,000 at a time at any bank branch. The exchange of Rs 2000 bills can also be made through business reporters up to a limit of Rs 4000 per day for an account holder. Deposits into bank accounts can be made without restrictions “ subject to compliance with extant Know Your client(KYC) morals and other applicable statutory/ nonsupervisory conditions ”, the RBI has said.
When can you start exchanging the Rs 2000 notes?
To give time to banks to prepare, RBI has asked people to approach branches or ROs of RBI from May 23 to exchange their notes.
What happens if someone has a very large number of Rs 2000 notes?
Technically, a person can seek multiple exchanges in packets of Rs 20,000 at a time. still, this is anticipated to attract the attention of enforcement agencies and the Income- duty Department. Those holding large totalities of plutocrat in Rs 2000 notes are likely to find it delicate to change their plutocrat.
Could there be a repeat of the demonetisation chaos of 2016?
It’s doubtful that bank branches will witness chaos and long ranges like in 2016 this time. The printing of Rs 2000 notes was stopped in 2018- 19, and they’re no longer generally seen with the public — unlike the ubiquitous Rs 500 and Rs 1000 notes in 2016.
Also, the decision to withdraw Rs 500 and Rs 1000 notes was blazoned suddenly, taking the public by surprise. The exchange Rs 2000 notes will begin only on May 23, so banks and the public have sufficient time.
So what is the value of Rs 2000 notes in circulation currently?
About 89 of the Rs 2000 denotation bills were issued previous to March 2017, and are at the end of their estimated 4-5-year lifetime. The total value of these bills in rotation has declined from Rs6.73 lakh crore at its peak as on March 31, 2018(37.3 of notes in rotation) to Rs3.62 lakh crore, constituting only10.8 of notes in rotation on March 31, 2023.
And what steps are banks supposed to take now?
The RBI has asked all banks to discontinue issuing Rs 2000 denotation bills with immediate effect, and to reconfigure ATMs and cash recyclers consequently.
Banks holding currency cases( CCs) should insure that no pullout of Rs 2000 denotation is allowed from the CCs. All balances held in the CCs should be classified as unfit and kept ready for dispatch to the separate RBI services.