RBI Announces Withdrawal of ₹2000 Denomination Banknotes

The Reserve Bank of India (RBI) has recently announced the withdrawal of the ₹2000 denomination banknotes from circulation. This decision aligns with the “Clean Note Policy” of the RBI and aims to streamline the currency requirements of the economy. Here are the key details regarding the withdrawal of ₹2000 banknotes.


The ₹2000 banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934, as a swift solution to meet the currency demand following the withdrawal of ₹500 and ₹1000 banknotes. However, with the availability of banknotes in other denominations in sufficient quantities, the objective of introducing the ₹2000 banknotes was fulfilled, and its printing was stopped in 2018-19.

Declining Circulation and Usage

Approximately 89% of the ₹2000 denomination banknotes were issued before March 2017 and are now reaching the end of their estimated life span of 4-5 years. The total value of these banknotes in circulation has decreased from ₹6.73 lakh crore (37.3% of Notes in Circulation) as of March 31, 2018, to ₹3.62 lakh crore, accounting for only 10.8% of Notes in Circulation by March 31, 2023. Moreover, it has been observed that the ₹2000 denomination is not commonly used for transactions. Meanwhile, there is an adequate stock of banknotes in other denominations to meet the public’s currency requirements.

Withdrawal Decision and Legal Tender Status

Considering the above factors and in line with the “Clean Note Policy,” the RBI has decided to withdraw the ₹2000 denomination banknotes from circulation. However, it is important to note that these banknotes will continue to be legal tender.

Deposit and Exchange Process

To facilitate a smooth transition, members of the public can deposit ₹2000 banknotes into their bank accounts or exchange them for banknotes of other denominations at any bank branch. The deposit process follows the usual manner without restrictions and is subject to existing instructions and statutory provisions.

Exchange Limit and Timeframe

To ensure operational convenience and avoid disruptions, the exchange of ₹2000 banknotes for banknotes of other denominations can be done up to a limit of ₹20,000/- at a time, starting from May 23, 2023, at any bank branch. All banks have been instructed to provide deposit and/or exchange facilities for ₹2000 banknotes until September 30, 2023.

Additional Exchange Facility

Apart from bank branches, the facility for exchanging ₹2000 banknotes up to the limit of ₹20,000/- at a time will also be available at the 19 Regional Offices (ROs) of RBI having Issue Departments, starting from May 23, 2023.

Ceasing Issuance

The RBI has directed banks to immediately stop issuing ₹2000 denomination banknotes. Members of the public are encouraged to utilize the period until September 30, 2023, to deposit and/or exchange their ₹2000 banknotes. The RBI has published a document of Frequently Asked Questions (FAQs) on its website for the convenience and information of the public.


The withdrawal of ₹2000 denomination banknotes is a strategic move by the RBI to optimize currency circulation and streamline the use of banknotes. The public is advised to adhere to the guidelines provided by banks and take advantage of the designated timeframe to complete the deposit and/or exchange process for ₹2000 banknotes.

RBI Announces Withdrawal of ₹2000 Denomination Banknotes – FAQs

Q1: Why is the RBI withdrawing ₹2000 denomination banknotes?

Ans: The RBI is removing banknotes of the denomination of 2000 in order to uphold its “Clean Note Policy” and preserve the effectiveness of the monetary system.

Q2: When were the ₹2000 banknotes introduced, and why?

Ans: After the 500 and 1000 banknotes were discontinued as legal tender, the 2000 banknotes were launched in November 2016 to satisfy the economy’s immediate need for money.

Q3: What is the current status of ₹2000 banknotes in circulation?

Ans: 2000 yen banknotes were just 10.8% of the total amount of banknotes in circulation as of March 31, 2023, a considerable decline in value. The anticipated 4-5 year lifetime of these banknotes is about to expire.


  • Pritipalit

    Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti's expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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