RBI to withdraw Rs 2,000 currency notes from circulation, tender valid till Sep 30

The RBI (Reserve Bank of India) has decided to withdraw the circulation of Rs 2,000 currency note, but has announced that it will be a 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, 2023. The banks shall provide deposit or exchange facility for Rs 2,000 banknotes until September 30, 2023.

RBI announced, "In purusance of the 'Clean Note Policy' of the Reserve Bank of India, it has been decided to withdraw Rs 2000 denomination from circulation."   

The central government has stated that any payments by an individual using their international Debit or Credit cards upto Rs 7 lakhs per financial year will be excluded from the LRS limits and hence, will not attract any (TCS) Tax Collected at source. Existing beneficial TCS treatment for education and health payments will also continue.

₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tenderhttps://t.co/2jjqSeDkSk

— ReserveBankOfIndia (@RBI)

The Reserve Bank of India has advised banks to stop issuing Rs 2000 denomination banknotes with immediate effect though banknotes in Rs 2000 denomination will continue to be legal tender.

About Rs 2,000 currency

The Rs 2000 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 1000 banknotes at that times.