Removal of 2000-rupee notes from circulation: What does it mean for you?

By Sahaj Palla

In 2016, during the demonetisation process, the 500 and 1000-rupee notes of the Mahatma Gandhi series were discontinued. As a replacement, the 2000-rupee note was introduced. However, the Reserve Bank of India recently issued a directive stating the withdrawal of the 2000-rupee note from circulation. Let’s have a closer look at the implications this decision has.

Myth: I won't be able to use the 2000-rupee note anymore.

Fact: While the 2000-rupee note is no longer in circulation, it hasn't been demonetised. You can still use the note, but the Reserve Bank of India (RBI) recommends exchanging it at your nearest bank.

Myth: The 2000-rupee note will be useless after September 30th.

Fact: No, even if you're unable to exchange the 2000-rupee note by September 30th, it will still be legal tender. Banks will continue to accept it, and you can use it for purchases. However, since it will be completely phased out by then, finding acceptance may become increasingly difficult.

Myth: I can only exchange the notes at my bank.

Fact: According to the RBI directive, you can exchange up to Rs. 20,000, or ten 2000-rupee notes, at any bank.

Myth: I need to fill out a form and provide identity proof to exchange the notes.

Fact: No forms need to be filled out, and no identity proofs are required for exchanging the notes. You can simply visit the bank and get the notes exchanged.

Myth: There will be charges for exchanging the notes.

Fact: The entire process is free of charge.

Disclaimer: The information in this article is compiled from various sources and is for informational purposes only. Please refer to the official RBI circular here.


Why are 2000-rupee notes being withdrawn from circulation?

According to the RBI, the production of 2000-rupee notes was discontinued in 2018-2019 due to an adequate supply of notes in other denominations. This step was taken to adhere to the RBI’s Clean Note Policy, which aims to provide citizens with high-quality notes featuring enhanced security features.

How many times can one exchange their 2000-rupee notes?

At a time, you can exchange up to Rs. 20,000 or ten 2000-rupee notes. After completing the exchange, you can join the queue again to exchange additional notes.

Do I need a requisition slip to exchange the 2000-rupee notes?

No, there is no requirement for a requisition slip when exchanging 2000-rupee notes.

Is there a limit on depositing 2000-rupee notes in bank accounts?

No, there is no limit on the number of 2000-rupee notes you can deposit in a bank account.