In a recent update, RBI Governor Shaktikanta Das addressed the withdrawal of ₹ 2,000 Banknotes, reassuring the public that these notes remain legal tender. He urged customers not to rush to banks, as they have a four-month window until 30 September 2023 to exchange the notes or transfer the amount to their bank accounts. Non-resident Indians, including H-1B visa holders, will not face any issues in this regard.
Das emphasized that shops must continue accepting ₹ 2,000 Banknotes, despite the withdrawal decision. He clarified that the RBI periodically withdraws specific series of notes and issues fresh ones, and in this case, the ₹ 2,000 Banknotes are being withdrawn from circulation while still retaining their legal status.
The governor predicted that most ₹ 2,000 Banknotes will be returned to the government by the September deadline. He urged banks not to provide customers with soiled or torn notes and advised them to make necessary arrangements to cope with the hot weather.
When questioned about the reason behind the withdrawal, Das explained that the notes had completed their life cycle. They were initially introduced after the demonetization of ₹ 500 and ₹ 1,000 notes in 2016 to replenish the currency supply. Das clarified that there are currently sufficient notes of other denominations in circulation, and the printing of ₹ 2,000 Banknotes has been halted.
He also mentioned the withdrawal limit of ₹ 20,000, which was imposed for operational convenience, assuring that both the RBI and currency chests possess an ample supply of notes. Das highlighted that these high-denomination notes were not commonly used in transactions, and thus, the overall economic activity would not be significantly impacted.
The RBI's decision to withdraw ₹ 2,000 Banknotes was announced on Friday, providing people with time until 30 September 2023 to deposit or exchange them at banks.