The RBI announces the withdrawal of the ₹2000 note from circulation.
The decision aims to address concerns related to the usage and potential misuse of large-value currency notes.
The ₹2000 note was introduced after the 2016 demonetization drive to curb black money and counterfeit currency.
The move aligns with the government's vision of promoting digital transactions and creating a less-cash economy.
This withdrawal does not imply demonetization; the ₹2000 note will continue to be legal tender.
The RBI plans to gradually replace the ₹2000 notes with smaller denominations, ensuring a seamless transition.
Businesses and individuals holding significant amounts of ₹2000 notes will need to exchange or deposit them in banks within a specified period.
The RBI's proactive approach reflects its commitment to managing the country's currency supply and fostering economic stability.
This decision encourages the use of lower-denomination notes and promotes a digital-first payment ecosystem.
The RBI's move underscores its focus on optimizing the currency mix and aligning with evolving economic trends.