The Reserve Bank of India (RBI) has decided to stop issuing banknotes having a value of Rs 2,000. The central bank announced in a circular on Friday that the notes will still be accepted as legal money.

The RBI has instructed banks to immediately stop issuing banknotes with a value of Rs 2,000. The central bank announced in a circular that all Rs 2,000 notes must be swapped by September 30, 2023.

The RBI circular stated that until September 30, 2023, "all banks shall provide deposit and/or exchange facilities for Rs 2000 banknotes in order to complete the exercise in a time-bound manner and to provide adequate time for the members of the public."

By September 30, 2023, the central bank has instructed residents to exchange their Rs 2,000 notes. Up to September 30, all banks are required to offer deposit or exchange services for notes worth Rs 2,000. The Rs 2,000 notes would still be accepted as legal money.

The central bank further said that beginning on May 23, any branch will accept exchanges of Rs 2,000 notes into notes of other denominations up to a cap of Rs 20,000 at a time in order to maintain operational convenience and prevent disruption of regular activities of bank branches.