Why RBI withdraw ₹2000 Bank note from circulation ?
The Reserve Bank of India (RBI) on May 19 decided to withdraw ₹2,000 denomination banknotes from circulation in pursuance of its “Clean Note Policy”. However the ₹2,000 notes will continue to be legal tender. A similar withdrawal of notes from circulation was undertaken in 2013-2014. In a reminder of the demonetisation days when the banking channel was overwhelmed by the massive crowd thronging into the branches to exchange banknotes, the decision to withdraw ₹2,000 notes is also likely to strain the system besides creating anxiety and inconvenience to the public. The central bank has advised the public to deposit ₹2,000 notes into their bank accounts and/or exchange them into banknotes of other denominations at any branch. “Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions,” the RBI said. The ₹2,000 banknote was introduced in November 2016 “primarily to meet the curr