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The exchange of currency will be allowed starting May ’23 with a cap of Rs.20000 per transaction
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The Rs.2000 note came into being during the demonetization in 2016 where old Rs.500 and Rs.1000 notes were withdrawn
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RBI has also advised that all the banks under its ambit should stop issuing Rs.2000 notes going forward
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The current move has proven the futility of introducing the Rs.2000 notes in the first place during the demonetization
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RBI reasons that not enough transactions are currently happening using the Rs.2000 notes leading to the withdrawal
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As per the RBI surveys and reports, the Rs.2000 note currently counts for about 10% to 11% of the total currency
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The Rs.2000 note is said to have completed its life cycle of 4-5 years and hence the withdrawal is imminent
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