The Reserve Bank of India (RBI) on May 22, in its latest circular, advised banks that the facility of exchange of Rs 2,000 banknotes across the counter shall be provided to the public in the usual manner, that is, as was being provided earlier.
“Banks are advised to provide appropriate infrastructure at the branches such as shaded waiting space, drinking water facilities, etc. considering the summer season,” the central bank said.
RBI has set a deadline of September 30 for the deposit or exchange of Rs 2,000 notes at banks.
Banks shall maintain daily data on deposits and exchanges of Rs 2,000 banknotes in a format provided by the RBI and submit the same as and when called for, it said.
It said it had asked banks to stop issuing Rs 2,000 notes with immediate effect.
RBI further noted that the exchange of the Rs 2,000 banknotes into banknotes of other denominations can be made up to a limit of Rs 20,000 at a time at any bank starting tomorrow, May 23.
The Rs 2000 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 ₹500 and ₹1000 banknotes in circulation at that time.With the fulfilment of that objective and the availability of banknotes in other denominations in adequate quantities, the printing of Rs 2,000 banknotes was stopped in 2018-19.
The printing of Rs 2000 banknotes was stopped in 2018-19. About 89 per cent of the Rs 2000 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 Rs 6.73 lakh crore at its peak of March 31, 2018 (37.3 per cent of Notes in Circulation) to Rs 3.62 lakh crore constituting only 10.8 per cent of Notes in Circulation on March 31, 2023.
Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public, RBI said.