Background 

The Reserve Bank of India RBI complied with the “Clean Note Policy” on May 19, 2023, by removing banknotes of the denomination of Rs. 2000 from circulation. It was said that it will continue to function as Legal Tender.

The Reserve Bank of India has ordered that the Rs. 2000 banknotes be deposited in bank accounts and exchanged for notes of other denominations at any bank branch. Starting on 23-5-2023, the exchange can be made at any bank up to a maximum of Rs 20,000 at a time to circumvent the usual activities of bank branches. This exchange facility will be available until September 30, 2023, for which the banks have been given instructions. Additionally, the exchange function will be made available at 19 RBI Regional Offices. The RBI has ordered all banks to immediately cease issuing notes of Rs. 2000.

To satisfy the economy’s need for cash after the withdrawal of the legal tender of the Rs. 500 and Rs. 1000 banknotes, Rs. 2000 denomination notes were issued in 2016. After sufficient numbers of Rs. 2000 banknotes were in circulation throughout the economy, printing was discontinued in 2018–2019. The RBI noted that these notes were not frequently utilised in transactions.