India withdrawing 2,000-rupee notes, says they will remain legal tender provisionally

By Andrei Skvarsky.

India is withdrawing its 2,000-rupee ($24) note from circulation, but this highest-denomination banknote is going to remain legal tender for four months.

The central bank said in a statement on June 19 that the measure is part of its “clean note policy”, a strategy to keep India’s paper cash clean, undamaged and counterfeit-proof.

According to the statement, nearly all 2,000-rupee notes were issued late in 2016 or early in 2017 and are past what is considered in India the normal lifespan for banknotes.  

And two-thousands are “not commonly used” in payments either, the Reserve Bank of India (RBI) said.

The RBI said 2,000-rupee notes would remain legal tender until September 30, 2023. One would be able to deposit two-thousands in a bank account or swap them for notes of other denominations before that date.

Ditching the 2,000-rupee note makes the 500-rupee one the highest-denomination banknote.

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