Rs 2000 Banknotes Set to be Withdrawn within 5 Days!

In its withdrawal notice, the RBI explained that the ₹2000 banknotes had fulfilled their intended purpose and were no longer in widespread circulation. The central bank also referenced its 'clean note policy,' which mandates the replacement of worn or soiled notes within a period of four to five years.

India to phase out ₹2000 Banknote in less than a week, with ₹24,087 Crore ($2.9 Billion) still in circulation. The Reserve Bank of India (RBI) has issued an order to withdraw the highest denomination banknote, the 2,000-rupee note, on May 19, 2023. This move comes after almost seven years of its introduction in November 2016 to remonetize the economy, following Prime Minister Narendra Modi's sudden decision to invalidate 1,000 and 500 rupee notes as legal tender overnight, as part of an anti-corruption initiative. Despite the majority of the 3.56 trillion rupees being deposited, approximately 7 percent of these notes were still in circulation as of September 1, 2023.

The pink-hued 2,000-rupee note had quickly gained popularity as a store of value and the preferred choice for significant cash transactions.

The RBI, in its withdrawal notice, stated that the 2,000-rupee notes had served their intended purpose and were no longer commonly used. Additionally, the RBI cited its "clean note policy," which mandates the replacement of worn or soiled notes within four to five years. The announcement in May contributed to a temporary boost in India's economy, with reports of crowded jewelry shops selling gold at a premium.

However, it's worth noting that the ₹2000 banknotes will remain legal tender even after September 30, 2023, but they will not be accepted for regular transactions. They can only be exchanged directly with the RBI, and the holder must provide a valid reason for missing the general exchange deadline.