What is Clean Note Policy of RBI? Why RBI withdraws 2,000 notes from circulation for Clean Note Policy?

Introduction:

Reserve Bank of India have announced on 19th May 2023 that 2000 Rupees currency note will be withdrawn from market but it still be valid tender.

What is Clean Note Policy?

1. Life span of 2000 Rupees currency notes are around 4-5 years.
2. Clean Note Policy is a policy adopted by RBI to ensure availability of good quality banknotes to the members of public.

Why Reserve Bank of India withdraw Currency?

Reserve Bank of India withdraw Currency as per Clean Note Policy.

Full implementation:

1. Reserve Bank of India will not print any new 2000 Rupees currency note from today.
2. All old 2000 Rupees currency note will be a legal tender.
3. Reserve Bank of India given 4 months time for people to exchange them from Bank till 30th September 2023.
4. Reserve Bank of India have requested people to change their 2000 Rupees currency notes from Bank till 30th September 2023.
5. Exchange of 2000 Rupees currency notes into banknotes of other denominations can be made upto a limit of 20,000 INR at a time at any bank starting from May 23, 2023.
6. But there is nothing to panic as 2000 Rupees currency notes will be a legal tender even after 30th September 2023.

Facts about 2000 Rupees currency notes:

1. Reserve Bank of India have stopped printing of 2000 Rupees currency notes in 2018-19.
2. Life span of 2000 Rupees currency notes are around 4-5 years.
3. Till 31st March 2018, total value of 2000 Rupees currency notes was around 6.7 Lakh Crore which was 37% of total Notes in Circulation.
4. Till 31st March 2023, total value of 2000 Rupees currency notes was declined to only around 3.6 Lakh Crore which was 10% of total Notes in Circulation.

What is 20% TCS On Credit Cards? How Will It Impact Foreign Trips of Indians?

How PM Modi removed black money and corruption by Demonetization and Technology?

How Indian PM Narendra Modi completely transformed Indian Railways in just 10 years?

How much India have achieved in 10 years under Indian PM Narendra Modi?

Landlord refused to rent house to a person in Bengaluru for low marks in 12th Class

Why Singapore have increased Additional Buyer’s Stamp Duty (ABSD)?

What is Real Estate Regulatory Act (RERA) and how much RERA is useful for home buyers in India?

Is there any Act for protecting the Rights of Tenants in India?

Why is a Valid Rental Agreement Required?

Rising Property rental prices in Bengaluru and its effects

Is it a good decision to move Singapore with monthly salary 12000 SGD for a family of 4?

Top 10 Artificial Intelligence (AI) Companies Around the World in 2023

What are the Major Concerns with Artificial Intelligence?