Mumbai, May 20 (KNN) The Reserve Bank of India (RBI) on Friday announced the withdrawal of Rs 2,000 from circulation, but will continue to be a legal tender. 

It said the existing Rs 2,000 notes can be deposited or exchanged in banks until September 30, but set a limit of “Rs 20,000 at a time”.

The Rs 2,000 notes were introduced during demonetisation in November 2016 when Rs 500 and Rs 1,000 notes were withdrawn into their bank accounts and/ or exchange them into notes of other denominations at any bank branch.

It also advised banks to stop issuing Rs 2,000 notes with immediate effect.

“In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs 2,000 banknotes can be made up to a limit of Rs 20,000 at a time, at any bank starting from May 23,” it said.

“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,” said RBI. 

“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,” it said.

The facility for exchange of Rs 2,000 notes, up to the limit of Rs 20,000 at a time, will also be provided at the 19 regional offices of the RBI having issue departments from May 23.  (KNN Bureau)