The Reserve Bank of India has decided to withdraw the ₹2,000 denomination banknotes from circulation but they will continue to remain as legal tender.
It has advised banks to stop issuing ₹2m000 denomination banknotes with immediate effect.
The ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of the 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 ₹500 and ₹1000 banknotes in circulation at that time.
The central bank said people can deposit or exchange for lower denomination notes on September 30 for up to ₹ 20,000 at a time.
The RBI may extend the deadline from September 30 if needed, but even if anyone has a ₹ 2,000 note after the current deadline, it will remain a valid tender.
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