Under "Clean Note Policy" RBI decided to withdraw Rs 2000 note from circulation
Tags: National Economy/Finance National News
The Reserve Bank of India (RBI) has decided to withdraw Rs 2,000 denomination banknotes from circulation under the "Clean Note Policy".
An Overview of the News
Rs 2,000 notes will continue to be legal tender.
Individuals can deposit the Rs 2,000 banknotes into their bank accounts or exchange them for other denominations at any bank branch.
From May 23, 2023, Rs 2,000 notes can be exchanged for other denominations up to a limit of Rs 20,000 at a time at any bank branch.
RBI's 19 regional offices with issue departments will also provide the facility to exchange Rs 2,000 banknotes up to a limit of Rs 20,000 at a time from May 23.
All banks to offer deposit and/or exchange services for Rs 2,000 notes by September 30, 2023.
Clean Note Policy:
The clean note policy was introduced by the Reserve Bank of India (RBI) in 1999 to address the issue of soiled and mutilated notes.
Banks are instructed not to give soiled, torn and mutilated notes to customers and instead deposit them with RBI.
Stapling of currency notes/packets is prohibited as per the policy.
The objective of the Clean Note Policy is to provide good quality currency notes and coins to the customers.
Soiled and mutilated currency notes can be easily exchanged at teller counters under the RBI's note refund rules of 2009.
Reserve Bank of India (RBI):
Establishment -1 April 1935, Kolkata
Founder - British Raj
Headquarters - Mumbai, Maharashtra, India
Governor - Shaktikanta Das
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