The Reserve Bank of India (RBI) has announced that the facility for exchanging and depositing ₹2000 banknotes will not be available on April 1 at 19 of its issuing offices. The central bank cited operations associated with the annual closing of accounts as the reason for this temporary suspension.
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In an official release, the RBI said that the facility will resume on April 2.
The exchange of ₹2000 banknotes has been available at the 19 RBI issue offices since May 19, 2023. Additionally, from October 9, 2023, these offices began accepting ₹2000 banknotes from individuals and entities for deposit into their bank accounts.
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According to the RBI’s statistics, as of March 1, 2024, 97.62 per cent of the ₹2,000 currency notes in circulation as of May 19, 2023, have been returned to the banking system. The total value of ₹2000 banknotes in circulation declined from ₹3.56 lakh crore at the close of business on May 19, 2023, to ₹8,470 crore as of the close of business on February 29, 2024.
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The RBI announced the withdrawal of ₹2,000 banknotes on May 19, 2023, as part of its clean note policy. These high-denomination notes were introduced in November 2016, following the withdrawal of the legal tender status of all ₹500 and ₹1,000 banknotes in circulation at the time.
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While the temporary suspension of the exchange and deposit facility may cause some inconvenience, the RBI’s move is a routine annual procedure related to its account closing operations. The central bank assured that the facility will resume on April 2, allowing the public to continue exchanging and depositing the ₹2000 banknotes.
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Published: 29 Mar 2024, 10:49 AM IST