Rs 2,000 notes will continue to be in use for normal transactions and other payments. However, it is advised to exchange the withdrawn notes by the end of September.
As the Rs 2000 notes are at the end of their estimated life-span of 4-5 years and not commonly used for transactions, the Reserve Bank of India (RBI) has decided to remove them from circulation.
The central bank has asked the public to deposit Rs 2000 into their bank accounts or swap them for banknotes at any bank branch, even though these notes will still be accepted as legal cash.
"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 banking regulator says.
In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, the exchange of Rs 2000 notes into other denominations can be made up to a limit of ₹20,000 at a time at any bank starting from May 23, 2023, the RBI says.
"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 ₹2000 banknotes until September 30, 2023," the banking regulator says, adding that separate guidelines have been issued to the banks.
Starting on May 23, 2023, the 19 regional offices of the RBI will additionally offer the ability to swap Rs 2000 notes up to a maximum of Rs 20,000 at a time.
The RBI urged the general public to deposit or exchange their Rs 2000 notes before September 30, 2023. Additionally, it has instructed banks to immediately stop printing banknotes with a denomination of 2000.
The introduction of the Rs 2000 banknote in November 2016 served largely to quickly address the economy's need for cash following the demonetization of the 500- and 1000-denomination notes in use at the time.
According to the RBI, the goal of launching banknotes in the denomination of 2000 was achieved once appropriate supplies of notes in other denominations were made available. The printing of banknotes in this denomination was discontinued in 2018–19.
Prior to March 2017, around 89% of banknotes of Rs 2000 were printed. The total value of these banknotes in circulation has decreased from a peak of 6.73 lakh crore as of March 31, 2018 (37.3% of notes in circulation) to a low of 3.62 lakh crore as of March 31, 2023, which represents only 10.8% of notes in circulation.
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 "Notebandi 2.0: Is it possible to use Rs 2000 note for normal transactions?")
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