The central bank will withdraw from circulation the high-value Rs 2,000 note, which was introduced in November 2016 just after demonetisation. People can exchange or deposit their Rs 2,000 notes between May 23 and September 30.
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The Rs 2,000 notes will continue to be valid even after the exchange or deposit deadline of September 30.
People can deposit or exchange the high-value notes for lower denomination ones up to Rs 20,000 at a time.
The Reserve Bank of India (RBI) said banks will exchange and take Rs 2,000 notes as deposits. The RBI’s 19 regional offices will also serve as exchange points till September 30.
The total value of the Rs 2,000 notes has fallen from Rs 6.73 lakh crore, or 37 per cent in circulation, at its peak in March 2018 to Rs 3.62 lakh crore, or 11 per cent in circulation, in March this year.
The RBI said one of the reasons why the Rs 2,000 note is being withdrawn is that this denomination is not commonly used for transactions. The stock of banknotes in other denominations is “adequate to meet the currency requirements of the public,” the RBI said in a statement on Friday.
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