Withdrawal of Big notes due to increase in fake currency circulation

The Reserve Bank of India (RBI) has decided to withdraw Rs 2,000 denomination currency notes from circulation. The notes are being withdrawn due to an increase in the circulation of fake currency, government sources told India Today.

The RBI said in a circular that this change has been brought about in pursuance of its ‘Clean Note Policy’. According to the sources, ‘Operation Clean Note Policy’ is aimed at targetting the black money market.

The Rs 2,000 denomination currency note was introduced in November 2016 following the demonetisation of Rs 1,000 and the old Rs 500 currency notes. According to the RBI, the objective of introducing the Rs 2,000 notes was met once currency in other denominations became available in adequate quantities. As such, the printing of Rs 2,000 notes was stopped in 2018-19.

The RBI has advised banks to stop issuing Rs 2,000 denomination notes with immediate effect. In a circular, the central bank said that all Rs 2,000 currency notes must be exchanged before September 30, 2023.