The Rbi has not banned it it has withdrawn it. The Reserve Bank of India (RBI) announced on May 19, 2023 that it would be withdrawing the ₹2,000 denomination banknotes from circulation. The decision was taken as part of the RBI’s “Clean Note Policy”, which aims to ensure the availability of good quality notes to the members of the public.
The ₹2,000 note was introduced in November 2016, following the demonetisation of ₹500 and ₹1,000 notes. The introduction of the ₹2,000 note was seen as a way to meet the currency requirement of the economy expeditiously. However, the RBI has now decided to withdraw the note as it is not commonly used for transactions by the public.
The value of ₹2,000 notes in circulation has declined over the years. As of March 31, 2023, the value of ₹2,000 notes in circulation was ₹10.8 trillion, which constitutes only 10.8 per cent of the notes in circulation. This indicates that the ₹2,000 note is not commonly used for transactions by the public.
The RBI has said that the facility to exchange ₹2,000 notes will be available at RBI offices and banks till September 30, 2023. After September 30, 2023, ₹2,000 notes will no longer be legal tender.
The withdrawal of ₹2,000 notes is unlikely to have a significant impact on the economy. The value of ₹2,000 notes in circulation is relatively small, and the RBI has said that it will ensure that there is adequate supply of other denominations of notes to meet the currency requirement of the economy.
The withdrawal of ₹2,000 notes is a part of the RBI’s efforts to improve the quality of currency notes in circulation. The RBI has been working to introduce new security features in banknotes to make them more difficult to counterfeit. The withdrawal of ₹2,000 notes will help to reduce the number of counterfeit notes in circulation.