Throughout India, citizens are racing against the clock to spend, deposit or exchange their 2000 Rupees banknotes but, why? In May 2023 the Reserve Bank of India announced that they will be withdrawing the 2,000 Rupee from circulation. The banknotes will remain legal tender for day-to-day transactions at the moment but, the final day to exchange or deposit them will be September 30, 2023. There is no word on what will happen after the final date but, there are various reasons as to why the Reserve Bank is doing this.
One of the reasons given is that a large amount in circulation of circulating 2000 Rupee banknotes are soiled so this is part of the Reserve Bank’s Clean Note Policy to replace them with newer, smaller and cleaner denominations that have added security measures too. Also, it is said that many people do not use them for transactions, so they just sit in people’s homes or businesses, and they have become obsolete. Another reason thrown into the conversation is that it’s to stamp out tax evaders, people hiding unaccounted for wealth, beneficiaries of corruption, and to push more people into centralized banking since a large amount of Indian citizens do not trust banks and only deal in cash.
Some citizens do not believe in stability of the Indian Rupee, for this reason they are taking this opportunity to turn their 2000 Rupees banknotes into viable investments like gold and foreign currencies. Many people still remember that in 2016 the same situation happened with 500 and 1,000 Rupee banknotes at the time. It was a very hectic time for those looking to exchange or deposit their banknotes.
Demonetized 500 & 1,000 Rupees In 2016
The banknotes demonized in 2016 are the 500 Indian Rupee. Its obverse side shows the RBI seal, the lion capital of Ashoka pillar, and a portrait of Mahatma Gandhi. Its reverse side depicts a language panel and the statue of Gandhi leading the nation by Gyarah Murti. The note was demonetized in 2016. Also the 1,000 Rupees, 2008. Depicted on the banknote’s obverse are Mahatma Gandhi, the lion capital of the Ashoka pillar, and the RBI seal that shows a tiger and a palm tree. The reverse features a language panel, farmers riding a combine tractor in a wheat field. It also depicts an offshore oil drilling platform, a satellite, a young woman using a computer with a CRT monitor, and a steel mill.
2000 Rupees to be Removed From Circulation
The current 2000 Rupees banknote that was introduced in 2016 is meeting the same fate as the 500 and 1,000 Rupees banknotes that it replaced. If you want to know what it looks like. Its obverse side shows the RBI seal, the lion capital of Ashoka pillar, and a portrait of Mahatma Gandhi. Its reverse side depicts the Swachh Bharat logo, a language panel, and the Mangalyaan (the Mars Orbiter Mission space probe).