RBI’s website crashes minutes after withdrawing Rs 2,000 banknotes from circulation

The Reserve Bank of India’s official website crashed on Friday due to heavy traffic triggered by central bank's decision to withdraw Rs 2,000 denomination banknotes from circulation. Those who tried to go to rbi.org.in could only see a crashed web page.

The increased public interest in the RBI website could be gauged from the demonetisation exercise seen in November 2016 when Rs 500 and Rs 1,000 bank notes were made illegal with immediate effect and ceased to be legal tender. However, RBI on Friday said Rs 2,000 banknotes will continue to be legal tender.

RBI also asked the banks to stop issuing Rs 2,000 denomination notes with immediate effect. The RBI has not specified if Rs 2,000 note will be valid or not after September 30. But, given the deadline for the public to return the notes is September 30, the question arises if the note will be valid after that date or not.

The announcement has also caused long queues at ATMs and petrol pumps.

"Members of the public can continue to use Rs 2,000 banknotes for their transactions and also receive them in payment. However, they are encouraged to deposit and/or exchange these banknotes on or before September 30, 2023," said RBI said in a press release.

The Rs 2,000 denomination bank note was introduced in November 2016, after the Prime Minister announced demonetization, to meet the economy’s requirements notes following the withdrawal of Rs 500 and Rs 1,000 notes.

Banks will exchange the high-end currency note up to a limit of Rs 20,000 from May 23, 2023.

About 89 per cent of the Rs 2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life span of 4-5 years, said RBI on Friday.

“The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to Rs 3.62 lakh crore constituting only 10.8 per cent of notes in circulation on March 31, 2023,” RBI said in a release.