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