Agencies/JK News Today

The Reserve Bank of India has extended the deadline to exchange, deposit Rs 2000 notes to October 7, 2023 from September 30, 2023.

As per an RBI press release dated September 30, 2023: As the period specified for the withdrawal process has come to an end, and based on a review, it has been decided to extend the current arrangement for deposit / exchange of Rs2000 banknotes until October 07, 2023.

The RBI press release further stated that With effect from October 08, 2023, the procedure for deposit / exchange of Rs 2000 banknotes shall be as under:

a) The deposit / exchange at bank branches shall be stopped.

b) Rs 2000 banknotes can continue to be exchanged by individuals / entities at the 19 RBI Issue Offices up to a limit of Rs 20,000/- at a time.

c) Individuals / Entities can tender ?2000 banknotes at the 19 RBI Issue Offices for credit to their bank accounts in India for any amount.

d) Individuals / Entities from within the country can also send Rs 2000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices for credit to their bank accounts in India.

e) Such exchange or credit shall be subject to relevant RBI / Government regulations, submission of valid identity documents and due diligence as deemed fit by RBI.

f) Courts, law enforcement agencies, government departments or any other public authority involved in investigation proceedings or enforcement, may, as and when required, deposit / exchange Rs 2000 banknotes at any of the 19 RBI Issue Offices without any limit.

4. Rs 2000 banknotes shall continue to be legal tender.

Limit on exchange

Members of the public can exchange Rs 2000 banknotes up to to a limit of Rs 20,000/- at a time.

What will happen if a bank refuses to exchange, accept deposit of Rs 2000 banknote?

According to the RBI website, “For redress of grievance in case of deficiency of service, the complainant / aggrieved customer may first approach the concerned bank. If the bank does not respond within a period of 30 days after lodging of the complaint or if the complainant is not satisfied with the response/resolution given by the bank, the complainant can lodge the complaint under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 at the Complaint Management System portal of RBI”

Why are Rs 2000 denomination banknotes being withdrawn?

The Rs 2000 denomination banknote was introduced in November 2016 under Section 24(1) of the of the RBI Act, 1934, primarily with the goal of meeting the economy’s currency requirements in a timely manner following the withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at the time. With the achievement of that goal and the availability of banknotes in other denominations in sufficient quantities, printing of 2000 banknotes was halted in 2018-19.

According to the RBI website, “A majority of the Rs 2000 denomination notes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continue to be adequate to meet the currency requirement of the public.”