₹2000 WITHDRAWN BUT CONTINUED AS LEGAL TENDER Flashcards
Why did the RBI introduce the Rs 2,000 note?
The RBI introduced the Rs 2,000 note in 2016 to address the shortage of cash following the demonetization of Rs 500 and Rs 1,000 notes.
When did the printing of Rs 2,000 notes stop?
The printing of Rs 2,000 notes stopped in 2018-19.
The answer stating that the printing of Rs 2,000 notes stopped in “2018-19” means the printing was discontinued sometime during the fiscal year between April 1, 2018, and March 31, 2019.
What options did the RBI provide for people with Rs 2,000 notes in May 2023?
In May 2023, the RBI announced people could either:
Deposit the Rs 2,000 notes into their bank accounts with no limit on the amount. This means you could deposit any number of Rs 2,000 notes into your bank account.
Exchange the notes for other denominations at banks, with a limit of Rs 20,000 per visit. This means you could exchange up to Rs 20,000 worth of Rs 2,000 notes for smaller denominations (like Rs 500, Rs 200, Rs 100, etc.) in a single bank visit.
What was the deadline for exchanging or depositing Rs 2,000 notes?
The deadline for exchanging or depositing Rs 2,000 notes was September 30, 2023.
Describe the current status of the ₹2000 note in India.
The ₹2000 note remains legal tender in India, but it has been withdrawn from circulation. This means it can still be exchanged for other rupee denominations at RBI offices, but it cannot be used in everyday transactions.
What is the difference between demonetization and withdrawal from circulation?
Demonetization: A specific denomination of currency loses its status as legal tender. It can no longer be used for any transactions or exchanged.
Withdrawal from circulation: A currency note is still legal tender but is gradually removed from active use. It can still be exchanged at banks.
Can you still use a ₹2000 note for purchases in India?
No, the ₹2000 note has been withdrawn from circulation and is generally not accepted as payment for goods and services.
If you have a ₹2000 note, what can you do with it?
You can exchange your ₹2000 note for other denominations of Indian rupees at a Reserve Bank of India (RBI) office.
Has the RBI indicated any plans to demonetize the ₹2000 note?
No, the RBI Governor, Shaktikanta Das, has stated that there is no current plan to demonetize the ₹2000 note.
What was the primary reason for the introduction of ₹2000 notes in India?
The ₹2000 notes were introduced as a temporary measure following demonetization to quickly replace higher denomination currency that had been removed from circulation.
Why has the use of ₹2000 notes become limited?
There are a couple of reasons:
Adequate supply of other denominations: India now has a sufficient supply of other denominations like the ₹100, ₹200, and ₹500 notes, making the ₹2000 less necessary.
Preference for smaller denominations: ₹2000 notes are not as convenient for everyday transactions as smaller denominations.
What is the RBI’s “Clean Note Policy”?
The RBI’s “Clean Note Policy” is an initiative to ensure the public has access to high-quality banknotes. This involves replacing older or worn-out notes with newer ones.
How does the RBI’s “Clean Note Policy” connect to the phasing out of ₹2000 notes?
The ₹2000 notes were printed on paper with an estimated lifespan of 4-5 years. Many of these notes were printed in 2016-2017, nearing the end of their lifespan. As part of maintaining its Clean Note Policy, the RBI is withdrawing the ₹2000 notes.
The RBI press release mentions several reasons for removing ₹2000 notes. What reasons are notably not mentioned in the press release?
The RBI press release does not cite the following as reasons for withdrawing ₹2000 notes:
Fighting black money
Fighting corruption
Reducing counterfeit notes.
