The Reserve Bank of India (RBI) has clarified that Rs 2,000 currency notes remain legal tender, despite their withdrawal from active circulation in May 2023. This withdrawal was a currency management exercise, not demonetization, meaning the notes are still valid for transactions. While retailers may be hesitant to accept them due to low circulation, there is no legal penalty for holding them. Over 98% of these notes have been returned, with remaining options for exchange or deposit available at RBI Issue Offices.