What is Clean Note Policy? Bani became the reason for withdrawing RBI’s 2000 note

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The Reserve Bank of India has decided to withdraw the Rs 2000 note on 19 May 2023. These notes will be changed in banks from May 23 i.e. tomorrow. Time has been given till 30 September 2023 to change this. RBI has said that these notes have only been withdrawn from circulation, but will remain legal tender.

RBI has decided to withdraw 2000 rupee notes under the clean note policy. The clean note policy of RBI ensures that good quality banknotes reach the public. The objective of this policy is to maintain the integrity of the Indian currency by removing damaged, counterfeit and soiled Indian currency notes.

What happens under Clean Note Policy?

Under the Clean Note Policy, banks and financial institutions have to remove unfit or damaged notes from circulation. Also, these notes will have to be replaced with new notes. Under this policy of RBI, the quality of notes in circulation is monitored.

Printing was discontinued in 2018

In December 2013, banks were asked by the RBI to replace bad, soiled and damaged notes with good quality notes under the Clean Note Policy. Significantly, the printing of 2000 notes started in 2016 and it was implemented after demonetisation. And in 2018-19 the central bank stopped printing these notes.

What did the governor say on the 2000 rupee note?

The Governor of the Reserve Bank of India on Monday gave his first reaction on the withdrawal of Rs 2000 from circulation and said that people have enough time for 4 months. People can change it in banks without any hassle and hurry. He said that notes of other denominations are available in sufficient quantity in the market. If there is any problem, you can contact the bank or RBI.