RBI to withdraw Rs 2000 currency note from circulation but it will continue to be legal tender

RBI to withdraw Rs 2000 currency note from circulation but it will continue to be legal tender.

RBI to withdraw Rs2000 currency note from circulation but it will continue to be legal tender.The Rs2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all Rs500 and Rs1000 banknotes in circulation at that time. “The objective of introducing ₹2000 banknotes were met once banknotes in other denominations became available in adequate quantities,” RBI said in a statement.

Therefore, printing of Rs2000 banknotes was stopped in 2018-19.About 89% of the Rs2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. The total value of these banknotes in circulation has declined from Rs6.73 lakh crore at its peak as on March 31, 2018 (37.3% of Notes in Circulation) to Rs3.62 lakh crore constituting only 10.8% of Notes in Circulation on March 31, 2023. It has also been observed that this denomination is not commonly used for transactions.