Rs 2000 Denomination : RBI
The RBI has decided to withdraw the Rs 2000 denomination banknotes from circulation.
- On November 8 2016, the PM of India announced demonetisation, withdrawing two banknotes (Rs 500 and Rs 1000) from circulation with immediate effect.
- The Rs 2000 and the new Rs 500 note were introduced under (Section 26) of the RBI Act 1934, primarily with the objective of meeting the currency requirement of the economy expeditiously.
- With the fulfilment of the objective, the printing of Rs 2000 notes was stopped in 2018-19.
- The RBI issued the majority of the Rs 2000 denomination notes prior to March 2017 – now at the end of their estimated lifespan of 4-5 years.
- Therefore, in pursuance of the Clean Note Policy of the RBI, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation.
- It is the process of eliminating the lawful acceptance status of a monetary unit → The existing types of currency are withdrawn through circulation and supplanted with new currency.
- While demonetization is exceptional, governments around the globe have used it to check – hyperinflation situations, counterfeit currency, terror and tax fraud, and to introduce a new monetary system in some circumstances.