2000 Rupee Banknotes Demonetized, last date to exchange notes in September

The Reserve Bank of India (RBI) announced its decision to remove Rs 2,000 banknotes from circulation on Friday and urged everyone to replace them by September 30, 2023.

In a statement issued on Friday, the central bank said: "In accordance with the Reserve Bank of India's "Clean Note Policy," it has been decided to remove the denomination 2000 banknotes from circulation. The 2000-denomination bills will still be accepted as legal tender. All banks must offer a deposit and/or exchange service for 2000 Rupee banknotes until September 30, 2023, in order to finish the exercise on schedule and give the people enough time.”

Following the demonetization of the previous Rs. 500 and Rs. 1,000 banknotes in November 2016, the new Rs. 2,000 currency note was released. The RBI claims that after money in other denominations was widely accessible, the goal of launching the Rs 2,000 banknotes was achieved. So, in 2018–19, production of the Rs 2,000 banknotes was already halted.

The 2,000 rupee notes are still considered legal tender, according to the central bank, which also stated that they can be placed in bank accounts or exchanged for lower amounts until September 30, 2023. Additionally, it has requested that banks offer deposit and/or exchange services for Rs. 2,000 notes up till the given date.

The Mooknayak spoke to Manvendra Pratap Singh, who is working in the banking sector to know about the move in detail. Manvendra says, “The production of Rs 2,000 notes is being stopped by the government, people have been given time till September. According to the RBI norms, the currency cannot be demonetized or banned before 15 years, but here the banks have to follow the instructions of the RBI, and these instructions are also passed from the ministry under a process.”

Starting on May 23, the 19 Regional Offices (ROs) of the RBI with issuing divisions will offer the ability to swap notes valued at Rs 2,000 up to a maximum of Rs 20,000 at a time.

The RBI stated in a statement that "the exchange facility for Rs 2,000 banknotes up to Rs 20,000 at a time would be available from May 23," advising the banks to stop printing Rs 2,000 denomination banknotes right away.

The largest denomination of Indian currency was the Rs 2,000 note. To quickly meet the economy's cash needs, the government eliminated the Rs 1,000 note, which was formerly the biggest denomination.

Since the break of the news opposition has started to draw flak on the move. Reacting to the move, Jairam Ramesh, the Congress general secretary communications in charge, tweeted: “Typical of our self-styled Vishwaguru. First Act, Second Think (FAST). 2000 rupee notes introduced with such fanfare after that singularly disastrous Tughlaqi firman of Nov 8 2016 are now being withdrawn.”

P Chidambaram, a former union minister and prominent member of the Congress, stated on Twitter that he would "not be surprised if the government/RBI re-introduced the Rs 1000 note as well."

BJP leaders justified the action in the meantime.

Baijayant Jay Panda, a former BJP member, tweeted his "first thoughts" in response to the RBI's choice. He claimed that because “people have until September 30th to turn them in, no one can complain of inconvenience.”