Congress slams PM Modi over RBI's decision to withdraw Rs 2000 notes

"Typical of our self-styled Vishwaguru. First Act, Second Think (FAST). Rs 2,000 notes introduced with such fanfare after that singularly disastrous 'Tughlaqi' firman of November 8, 2016 are now being withdrawn," said Congress general secretary in-charge Communications Jairam Ramesh said in a tweet, in a veiled attack on the PM.

The RBI in a statement on Friday announced that it has decided to withdraw Rs 2000 denomination banknotes from circulation in line with its "Clean Note Policy".

The central bank's 19 regional offices and other banks will start taking Rs. 2,000 notes for exchange with lower denomination ones from May 23.

However, the notes will still remain legal tender, the RBI said.

In a circular, the RBI has directed all banks to stop issuing Rs. 2,000 notes immediately.

The RBI started printing the Rs. 2,000 note in November 2016 after Prime Minister Narendra Modi scrapped high-value Rs. 1,000 and Rs. 500 notes overnight.

"The objective of introducing ₹ 2,000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, printing of ₹ 2000 banknotes was stopped in 2018- 19," the RBI said in a statement.

"In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of ₹ 2,000 banknotes into banknotes of other denominations can be made up to a limit of ₹ 20,000 at a time at any bank starting from May 23, 2023," the RBI said.

The upper limit to deposit or exchange Rs. 2000 notes till Sept 30 is Rs. 20,000 at a time.

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