Rs 2000 notes withdrawn: Key takeaways from RBI's announcement

RBI on Friday announced the withdrawal of Rs 2,000 currency notes from circulation. Following are the highlights

* Rs 2,000 currency notes to continue to be legal tender till September 30.

* Rs 2,000 notes with the public can be deposited in bank accounts or exchanged at banks and RBI's 19 Regional Offices.

* Deposits of Rs 2,000 notes into bank accounts can be made without restrictions subject to compliance with extant Know Your Customer (KYC) norms and other requirements.

* Public can exchange Rs 2,000 notes up to to a limit of Rs 20,000 at a time beginning May 23.

Check reactions on withdrawal of Rs 2000 notes

* Exchange of Rs 2,000 notes can be done via banking correspondents for up to Rs 4,000 per day for an account holder.

* Rs 2,000 note was introduced after demonetisation in November 2016.

* Unlike the 2016 demonetisation, Rs 2,000 notes will continue to be legal tender till September 30.

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* The withdrawal follows Rs 2,000 notes being reportedly used for hoarding black money and money laundering.

* RBI had stopped printing of fresh Rs 2,000 notes since 2018-19.

* About 89 per cent of the Rs 2,000 notes were issued prior to March 2017.

* The total value of these banknotes in circulation declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to Rs 3.62 lakh crore (10.8 per cent of notes in circulation) as on March 31, 2023.