2000 notes ban

RBI Governor Shaktikanta Das said on Thursday that as of now, close to 50 per cent of the Rs 2,000 denomination notes that were in circulation have come back to the banking system. On May 19 this year, the Reserve Bank of India announced that it was withdrawing Rs 2,000 denomination currency notes from the system. People having these notes could either exchange them in banks or just deposit the notes in their bank accounts till September 30, it had said. "We had said that as on March 31 this year, totally Rs 3.62 lakh crore (worth) Rs 2,000 notes were in circulation. After the announcement that we made, totally so far, about Rs 1.80 lakh crore (worth) of Rs 2,000 notes have come back. This is roughly about 50 per cent of Rs 2,000 notes which were in circulation on March 31," Das told reporters in a briefing post the monetary policy announcement. Out of the total Rs 2,000 denomination currency notes that have come back into the system, on a provisional basis, about 85 per cent of them are coming back as deposits into bank accounts, he further added. The Rs 2,000 denomination currency notes were introduced post demonetisation in November 2016 when Rs 500 and Rs 1,000 currency notes were withdrawn as legal tender. Last month, RBI said it was withdrawing Rs 2,000 currency notes as a part of its "clean note policy" and it also observed that this denomination was not commonly used for transactions. Printing of the said notes was stopped back in 2018-19 once banknotes in other de...

The currency notes of Rs 2,000 denomination were not printed in 2019-2020. The circulation of these notes have declined over the years, the annual report of the RBI also said. The report further went on to say that the number of Rs 2,000 currency notes in circulation has come down from 33,632 lakh pieces at end-March 2018 to 32,910 lakh pieces at end-March 2019 and further to 27,398 lakh pieces at end-March 2020. The number of pieces of Rs 2,000 denomination notes constituted 2.4 per cent of the total volume of notes at end-March 2020, down from 3 per cent at end-March 2019 and 3.3 per cent at end-March 2018. In value terms also, the share has come down to 22.6 per cent at end-March 2020, from 31.2 per at end-March 2019 and 37.3 per cent at the end-March 2018. On the other hand, the circulation of currency notes of denomination of Rs 500 and Rs 200 has gone up substantially, both in terms of volume and value over the three years beginning 2018. The RBI report further revealed that no indent for printing of Rs 2,000 currency notes was made during 2019-20 and no fresh supplies were made by BRBNMPL (Bharatiya Reserve Bank Note Mudran Private Limited) and SPMCIL (Security Printing and Minting Corporation of India Limited). "The indent of banknotes for 2019-20 was lower by 13.1 per cent than that of a year ago. The supply of banknotes during 2019-20 was also lower by 23.3 per cent than in the previous year mainly due to the disruptions caused by the outbreak of COVID-19 and the...

Rs 2000 Note Ban in India, RBI withdraws Rs 2,000 Note Latest News Updates: The Reserve Bank of India (RBI) on Friday said that it will withdraw the Rs 2,000 denomination banknote from circulation but it will continue as legal tender. In a statement, the RBI said: "The 2,000 denomination banknote was introduced in November 2016 primarily to meet the currency requirements of the economy in an expeditious manner after the withdrawal of legal tender status of all 500 and 1,000 banknotes in circulation at that time." It also said that all banks shall provide deposit and/or exchange facility for 2,000 banknotes until September 30, 2023. The RBI said it will withdraw all the Rs 2,000 banknotes as a part of its clean note policy. 2000 Note Banned in India| ' I Hope The Decision Was Taken By The Experts', Says Delhi Minister Saurabh Bharadwaj "This whole concept of starting the circulation, stopping the circulation of notes, or issuing of new notes, was started by PM Modi and the economy suffered due to this... I don't know what will be the pros and cons of this step but I hope the decision was taken by the experts," says Delhi Minister Saurabh Bharadwaj on RBI's decision to withdraw Rs 2,000 currency notes from circulation. NCP Slams Centre For RBI's Decision To Withdraw Rs 2,000 Note The Nationalist Congress Party (NCP) slammed the Centre for RBI's decision to withdraw Rs 2,000 notes from circulation. NCP spokesperson Clyde Crasto said what had the government achieved by introdu...

The Reserve Bank of India has decided to withdraw Rs 2,000 denomination banknotes from circulation and asked everyone to exchange them by September 30, 2023. The Rs 2,000 notes, however, will continue to be legal tender. We explain why the RBI has withdrawn the notes and what you need to do. Why are the Rs 2000 denomination banknotes being withdrawn? According to the RBI, the Rs 2000 denomination banknote was introduced in November 2016 “primarily with the objective to meet the currency requirement of the economy in an expeditious manner after withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time.” With fulfilment of that objective and availability of banknotes in other denominations in adequate quantities, printing of Rs 2000 banknotes was stopped in 2018-19. A majority of the Rs 2000 denomination notes were issued prior to March 2017 and are currently at the end of their estimated life-span of 4-5 years. Click here for more The RBI has observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continue to be adequate to meet the currency requirement of the public. In view of the above, and in pursuance of the “Clean Note Policy” – a policy adopted by RBI to ensure availability of good quality banknotes to the members of public – the central bank decided to withdraw the Rs 2000 denomination banknotes from circulation. What should you do your Rs 2000 denominat...

The recent ban on ₹2000 notes by the Reserve Bank of India [1] (RBI) has caught the attention of the nation, sparking widespread speculation and debate about its implications for the Indian economy. Introduced just a few years ago as part of the demonetization drive, the ₹2000 notes were intended to facilitate large transactions and curb black money. However, the decision to ban these high-denomination notes has raised questions about the effectiveness of their initial purpose and the potential consequences of this move. In this blog post, we will delve into the details of the ban on ₹2000 notes, explore the rationale behind the decision, and analyze its implications for the Indian economy. By understanding the background and examining the potential effects, we aim to shed light on the significance of this move and its potential impact on various sectors. From the disruptions in cash-dependent sectors to the promotion of digital payments, we will analyze the challenges and opportunities presented by the ban on ₹2000 notes. Moreover, we will critically evaluate the decision and consider its potential implications for the informal economy, black money, and the overall financial landscape of India. As we navigate through the intricacies of this recent development, it is essential to gain a comprehensive understanding of the ban on ₹2000 notes and its potential implications for the Indian economy. By analyzing the rationale behind this decision and considering its various effe...

In comparison to the economic, financial and monetary tsunami that swept across India on November 9, 2016, the RBI’s notification of May 19 on the recall of ₹2,000 notes was akin to just a strong wave hitting one shore. The reasons are obvious. The ₹2,000 notes comprised only about 10 per cent of the total currency as of end-March 2023; in comparison, 86 per cent of currency was demonetised in November 2016. Further, the time for the public to turn in their old notes is much longer now — about 20 weeks versus five weeks then. However, the main reason for the negligible impact of the May 19 notification is the extraordinary escape clauses that followed. SBI, the very next day, issued a circular stating that no ID proof was required for exchange or deposit of the ₹2,000 note. To cap it all, RBI Governor Shaktikanta Das on May 22 announced that the notes will continue to be legal tender after September 30. The ₹2,000 note was originally issued right after the note ban was announced to replenish the drastically depleted stock of currency as fast as possible. Since the goal of the ban was to reduce the scope for black money by removing high denomination (value) notes, was not doubling the size of the highest note (₹1,000 back then) aggravating the malaise? The answer is not so clear-cut. However in making concrete, quick decisions in real time, the line has to be drawn arbitrarily somewhere. One can conclude that the ₹2,000 note perhaps struck the right balance between faster r...