New Delhi, May 19: The Reserve Bank of India (RBI) on Friday announced that it has decided to withdraw Rs 2000 currency notes from circulation. The Central Bank has given the time till September 30, 2023 to exchange the notes at banks.

It believes that four-month time is enough for people to exchange Rs 2000 notes. It is believed that most of the Rs 2,000 notes that are in the circulations are expected to return back to the banks within these four-months (September 30).

However, RBI said Rs 2,000 denomination bank notes will continue to remain legal tender even after September 30.

Sources said that this is a routine exercise of RBI and people need not panic.

Meanwhile, banks have been advised to stop issuing Rs 2000 denomination banknotes with immediate effect by the central bank.

In November 2016, the Rs 2,000 denomination banknote was introduced, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time.

The main objective behind introducing Rs 2,000 banknotes was met once banknotes in other denominations became available in adequate quantities.

RBI stated that the printing of Rs 2,000 banknotes was stopped subsequently in 2018-19.