The Reserve Bank of India (RBI) has announced the withdrawal of ₹2000 denomination banknotes from circulation, although they will continue to be legal tender. The RBI has instructed banks to cease issuing ₹2000 banknotes immediately. The ₹2000 note was introduced in November 2016 to meet the currency demand after the demonetization of ₹500 and ₹1000 notes.

Citizens will be able to deposit ₹2000 banknotes into their bank accounts or exchange them for banknotes of other denominations at any bank branch until September 30, 2023. The RBI expects that the majority of ₹2000 notes in circulation will be returned to banks within this four-month period. The decision to withdraw the ₹2000 notes is part of the RBI's routine exercise, and there is no need for the public to panic.

The printing of ₹2000 banknotes was halted in 2018-19, and most of the notes in circulation were issued prior to March 2017. The RBI stated that the ₹2000 notes have reached the end of their estimated lifespan of 4-5 years, and their usage for transactions is not common. The total value of ₹2000 notes in circulation has decreased from ₹6.73 lakh crore in March 2018 to ₹3.62 lakh crore in March 2023.

Other denominations of banknotes are sufficient to meet the currency requirement of the public, according to the RBI. This decision aligns with the RBI's "Clean Note Policy." Members of the public can deposit ₹2000 banknotes into their bank accounts or exchange them for other denominations at any bank branch. Exchanges will be limited to ₹20,000 at a time starting from May 23, 2023.