Rs 2,000 note withdrawal: When BJP MP Sushil Modi proposed phasing out the denomination

The Reserve Bank of India (RBI) on Friday decided to withdraw the Rs 2,000-rupee note, the central bank said in a statement. The decision was taken by RBI in pursuance of its clean notes policy. The Rs 2,000-currency note will continue to remain legal tender, at least till September 30. People seeking to exchange their Rs 2,000 notes can go to any bank from May 23 onwards for the enchange. While the RBI's decision to withdraw the Rs 2,000 note came on May 19, BJP Member of Parliament Sushil Modi had made the suggestion for the first time two years ago.    

What had Sushil Modi said? 

Last year, Sushil Modi, speaking in Parliament, said fake notes of Rs 2,000 currency were being found in various places at a time when RBI had already stopped printing such notes. Giving examples of how developed economies and low-value currency denominations, Modi proposed the Rs 2,000 note should be withdrawn gradually. 

"I request the government to withdraw the Rs 2,000 note in a phased manner and gradually," Sushil Modi had said. 

What RBI said about withdrawal of Rs 2,000 note? 

The RBI has announced that the Rs 2,000 will be legal tender till September 30, 2023. RBI has stated that the exchange of Rs 2,000 banknotes of other denominations can be made upto a limit of Rs 20,000 at a time at any bank starting from May 23. The banks shall provide a deposit or exchange facility for Rs 2,000 banknotes until September 30, 2023.

RBI to withdraw Rs 2000 currency note from circulation but it will continue to be legal tender. pic.twitter.com/p7xCcpuV9G

— ANI (@ANI)

RBI announced, "In pursuance of the 'Clean Note Policy' of the Reserve Bank of India, it has been decided to withdraw Rs 2,000 denomination from circulation."   

About Rs 2,000 currency denomination

The Rs 2,000 denomination note was introduced in November 2016 under Section 24(1) of RBI Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes at that times.