RBI withdraws Rs 2000 currency note from circulation, asks all to exchange it by September 30

New Delhi : The Reserve Bank of India on Friday announced that the highest currency note in India – Rs 2000 – will be phased out from circulation, adding that the currency notes will remain legal tender. The financial body said that people can exchange or deposit the Rs 2000 currency note at any bank branch, but set the limit to Rs 20,000 per transaction.

The central bank has asked people to submit the currency note into their bank accounts or get it exchanged into lower denominations from any bank branch. The banks have been advised to stop issuing Rs 2000 currency note from immediate effect.

"To complete the exercise in a time-bound manner and to provide adequate time to the members of public, all banks shall provide deposit and/ or exchange facility for Rs 2,000 banknotes until September 30, 2023," it said.

"Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions," the RBI said.

This is a regular exercise and a similar thing was done in the year 2013 and 2014. In November 2016, PM Narendra Modi had addressed the nation to announce that Rs 500 and Rs 1000 not being the legal tender.