RBI to withdraw Rs 2,000 notes from circulation; notes will continue to be legal tender note ban

The Reserve Bank of India (RBI) has chosen to stop issuing Rs 2,000 notes.

The Rs 2,000 notes would continue to be accepted as legal money despite the removal.

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Removing the notes seeks to reduce illicit market transactions and promote the usage of electronic payment systems.

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A stronger level of control over the circulation of high-denomination money is anticipated to be made possible by the elimination of Rs 2,000 notes.

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Until they are pulled out of circulation, existing Rs 2,000 notes are still legal tender and may be utilised for transactions.

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Even after the notes are withdrawn, banks and other financial institutions will still accept and exchange them.

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By making the change, the monetary system will be simplified and the supply of large-value notes in the market.

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