India withdraws Rs 2000 notes

 

Central Bank of India has announced to withdraw Rs 2000 notes from the market. There will be an opportunity to exchange or deposit this note till September 30. This decision has been informed in a statement of the Reserve Bank of India (RBI) on Friday.

According to the statement of the central bank, from May 23, in its 19 regional offices as well as in other banks, low-value notes can be collected in exchange of Rs. 2000 notes in the market. The lower value notes will remain valid in the market. However, one can exchange a maximum of Rs 20,000 worth of Rs 2,000 notes at a time.

Earlier in November 2016, Indian Prime Minister Narendra Modi announced the cancellation of 1000 and 500 rupee notes overnight. After that announcement, the Reserve Bank of India started printing 2000 rupee notes in the same year.

At that time Rs 2000 notes were introduced in the market to meet the shortage of notes. At present there is ample supply of other notes. So in 2018-19 the printing of Rs 2000 notes was stopped.

However, a source told NDTV that the central reserve bank can extend the deadline if necessary.

According to the RBI, 89 percent of the current Rs 2,000 notes in the market were issued before March 2017. The amount of Rs 2000 notes being traded in the market has decreased day by day. As on March 31, 2018, the value of the notes in the market was Rs 6.73 lakh crore. But on March 31, 2023, it decreased to 3.62 lakh crores.