2nd Demonetization in 7 years, RBI is Withdrawing 2000 Rupee Note Completely from System

On Friday, the Reserve Bank Of India(RBI) announced that It has decided to withdraw the 2000 rupee note from circulation. People can exchange or deposit their 2000 rupee note until 31st September 2023. The process of exchange and deposit will start in banks all over India on the 23rd of May,2023. Everyone has to keep in mind these things that 

  • The existing Rs 2,000 denomination banknotes will continue to be legal tender.
  • The nonbank holder can also exchange the 2000 rupee note but at a time, only 10 notes of 2000 rupee can be exchanged
  • Exchange or deposit can be done from any of the banks all over India until 31st September,2023.
  • If any bank refuses to exchange or deposit the 2000 rupee note, a complaint can be filed under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 at the Complaint Management System. 
  • There are no fees or charges for the exchange facility. This is free of cost.
  • The time span of 4 months is enough for exchanging and depositing the cash money which is in the form of 2000 rupee notes. So there is no need to rush. 

There are some points that are the reasons for banning 2000 rupee notes.

  • During demonetization in 2016, a 2000 rupee note was issued to fulfill the demand of money which was lacking at that time. But now, there is no specific purpose to keep 2000 rupee notes in flow. 
  • It was observed by RBI that the 2000 rupee note is not much used for transactions. 
  • According to a few reports, the fake notes of 2000 are being caught at very high no. This also would be the reason for banning the 2000 rupee note.
  • Since 2018, New notes of 2000 have not been printed by the RBI. The majority of the 2000 rupee note was made before March 2017. Since then, the soft demonetization of the 2000 rupee was done.
  • The stock of banknotes in other denominations is in adequate quantity to fulfill the requirement of money.

Few media reporters are being trolled for telling this decision was a masterstroke and for spreading the fake news that there is a nano chip inside the note.

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