October 1, 2023: The last date to exchange or deposit Rs 2,000 banknote has been extended from September 30, 2023, to October 7, 2023, according to a press release by the Reserve Bank of India (RBI). On May 19, 2023, the RBI announced that Rs 2,000 notes would be withdrawn from circulation, providing a four-month window, till September 30, 2023, to deposit or exchange the notes with other denominations. The maximum limit to which the Rs 2,000 banknotes can be exchanged is Rs 20,000.
The RBI said in its statement that 96% of the Rs 2,000 banknotes in circulation have since been returned as on May 19, 2023. According to the data from banks, Rs 3.42 lakh crore has been received of the total value of Rs 3.56 lakh crore of Rs 2,000 banknotes in circulation as on May 19, 2023.
The new procedure for exchanging or depositing Rs 2,000 banknotes will come into effect from October 08, 2023.
- The deposit or exchange at bank branches will be stopped.
- Individuals and entities can continue to exchange Rs 2,000 banknotes at the 19 RBI Issue Offices, up to a limit of Rs 20,000 at a time.
- Individuals and entities can deposit Rs 2,000 banknotes at the 19 RBI Issue Offices and credit them to their bank accounts in India for any amount.
- Individuals and entities within the country can send Rs 2,000 banknotes through India Post to any of the 19 RBI Issue Offices for credit to their Indian bank accounts.
- Such transactions are subject to relevant RBI and government regulations, which require valid identity documents and compliance with RBI’s due diligence process.
- Courts, law enforcement agencies, government departments or other public authorities involved in investigations or enforcement can deposit or exchange Rs 2,000 banknotes at any of the 19 RBI Issue Offices without any limit.
Can Rs 2000 banknote be used for normal transactions?
Rs 2,000 banknotes will continue to be legal tender. However, the RBI has advised members of the public to deposit and/or exchange the Rs 2,000 banknotes without any further delay.
Why are Rs 2,000 banknotes being withdrawn?
According to the RBI’s website, the Rs 2,000 banknote was introduced in November 2016 under Section 24 (1) of the RBI Act, 1934, with the aim to meet the currency requirement of the economy after the demonetisation of all Rs 500 and Rs 1,000 banknotes. With the fulfilment of this objective and adequate availability of banknotes in other denominations, the printing of Rs 2,000 banknotes was stopped in 2018-19.
A majority of the Rs 2,000 banknotes was issued before March 2017 and are at the end of their estimated lifespan of four to five years. It has been observed that the Rs 2,000 denomination is not commonly used for transactions. Moreover, the stock of banknotes in other denominations continues to be adequate to fulfil the public’s currency requirement. In view of the above, and in pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India (RBI), it has been decided to withdraw Rs 2,000 denomination banknote from circulation.
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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