You have from May 23 to Sept 30 to deposit these notes in your bank account or exchange them for other denominations. But you can exchange only 10 notes at a time.

The Reserve Bank of India (RBI) has announced that the 2,000 denomination banknote will be withdrawn from circulation from May 23, 2023. This means that all ?2,000 notes in circulation will no longer be legal tender. the RBI has given people until September 30, 2023 to deposit their ?2,000 notes in their bank accounts or exchange them for other denominations of notes. However, there is a limit of 10 notes that can be exchanged at a time.

There are a few reasons why the RBI has decided to withdraw the ?2,000 denomination note. One reason is that the note is often used for illegal activities, such as money laundering and terrorism financing. Another reason is that the note is difficult to counterfeit. the RBI has also said that the withdrawal of the ?2,000 denomination note will help to reduce the size of the Indian currency in circulation. This is because the ?2,000 note is a large denomination note and it is not used as frequently as smaller denomination notes. the withdrawal of the ?2,000 denomination note is a significant step by the RBI. It is a move that is likely to have a major impact on the Indian economy.

The Reserve Bank of India (RBI) has decided to withdraw the Rs 2000 denomination banknotes from circulation.  But existing notes will continue to be legal tender, the RBI announced on Friday.

The central bank has advised the public to deposit Rs 2000 banknotes, which were introduced after Rs 500 and Rs 1000 notes were withdrawn during the demonetization exercise six years ago, into their bank accounts and /or exchange them into banknotes of other denominations at any bank branch.

The RBI issued the majority of the Rs 2000 denomination notes prior to March 2017; these notes are now at the end of their estimated lifespan of 4-5 years. This denomination is no longer commonly used for transactions; besides, there is adequate stock of banknotes in other denominations to meet currency requirements.

“In view of the above, and in pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation,” the RBI said.

So will the Rs 2000 banknotes continue to be legal tender?

The Rs 2000 banknote will continue to maintain its legal tender status, the RBI has said. Members of the public can continue to use Rs 2000 banknotes for their transactions and also receive them in payment. “However, they are encouraged to deposit and/ or exchange these banknotes on or before September 30, 2023,” the RBI said.

What will happen after September 30?

The RBI has not clarified the status of these notes after September 30. However, it has said that its instructions on the Rs 2000 notes will be effective until that date.

What should you do with the Rs 2000 notes you have?

The RBI recommends people “apply to bank branches to deposit and/or exchange these notes.” "The account deposit and exchange service for 2,000rupee notes will be available at all banks by September 30, 2023," RBI reported. The trading opportunity will also be available at RBI's 19 regional offices with case departments by September 30th.

Is there a limit on how much money you can exchange or deposit?

Notes of 2,000 rupees can be exchanged up to a limit of 20,000 rupees each. No need to go to your bank - even a non-bank account holder can exchange notes from Rs 2,000 up to a limit of Rs 20,000 at any bank branch at a time.

 Exchange of Rs. 2,000 notes can also be done through commercial correspondents up to a limit of Rs. 4,000 per day for the account holder.  Deposits into the bank account can be made without restrictions, "subject to compliance with applicable Know Your Customer (KYC) standards and other applicable legal/regulatory requirements," RBI said.

When can you start exchanging the Rs 2000 notes?

To give time to banks to prepare, RBI has asked people to approach branches or ROs of RBI from May 23 to exchange their notes.

What happens if someone has a very large number of Rs 2000 notes?

Technically, a person can search for multiple deals in bundles of 20,000 rupees at the same time. However, it is expected to draw the attention of law enforcement and the Income Tax Administration. Those with large amounts of money in Rs 2000 bills may find it difficult to change money.

Could there be a repeat of the demonetization chaos of 2016?

It is unlikely that there will be as much chaos and long queues in the bank branches as this time in 2016. Printing of 2000 rupee banknotes ceased in 2018/19 and, unlike the ubiquitous rupee banknotes, they are no longer in widespread public view. Exchange of the 2,000rupee notes will not start until May 23, giving banks and the public plenty of time.

so what is the value of Rs 2000 notes in circulation currently?

About 89% of the 2000rupee banknotes were issued before March 2017 and have an estimated shelf life of 4-5 years. The total value of these banknotes in circulation fell from 6.73 lakh crore at its peak on March 31, 2018 (37.3% of banknotes in circulation) to 3.62 lakh crore, or just 10 rupees.8% of banknotes in circulation as of March 31, 2023And what steps should banks take now?

RBI ordered all banks to stop issuing Rs 2,000 notes effective immediately and to remodel ATMs and cash recycling facilities accordingly