The Reserve Bank of India (RBI) has extended the deadline for exchanging or depositing Rs 2,000 banknotes to October 7, 2023. Learn about the new procedures effective from October 8, 2023, and why the Rs 2,000 banknotes are being withdrawn.
In a significant announcement, the Reserve Bank of India (RBI) has extended the last date for exchanging or depositing Rs 2,000 banknotes. Initially set for September 30, 2023, the new deadline now stands at October 7, 2023. This extension comes in response to the expiration of the withdrawal period, and it brings some important changes to the existing procedures.
New Procedures Effective from October 8, 2023 for Depositing or Exchanging Rs 2,000 Banknotes:
a) Bank branches will no longer accept deposits or exchanges of Rs 2,000 banknotes.
b) Individuals and entities can exchange Rs 2,000 banknotes at any of the 19 RBI Issue Offices, with a transaction limit of Rs 20,000.
c) Deposits of Rs 2,000 banknotes can be made at the 19 RBI Issue Offices, with the funds credited to Indian bank accounts.
d) Domestic individuals and entities can send Rs 2,000 banknotes through India Post to any of the 19 RBI Issue Offices for crediting to their Indian bank accounts.
e) These transactions are subject to relevant RBI and government regulations, which mandate valid identity documents and compliance with RBI's due diligence procedures.
f) Courts, law enforcement agencies, government departments, and 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 set limit.
Exchange Limit for the General Public:
The general public is allowed to exchange Rs 2,000 banknotes up to a maximum limit of Rs 20,000 per transaction.
In cases where a bank refuses to exchange or accept a deposit of Rs 2,000 banknotes, individuals have recourse options outlined on the RBI website. It states that individuals may initially approach the concerned bank for grievance redressal. If the bank fails to respond within 30 days of lodging the complaint or if the complainant remains unsatisfied with the bank's response or resolution, they have the option to file a complaint under the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021, through the Complaint Management System portal of RBI.
Why are Rs 2,000 Denomination Banknotes Being Withdrawn?
The Rs 2,000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934, with the primary objective of swiftly meeting the currency requirements of the economy following the demonetisation of all Rs 500 and Rs 1000 banknotes in circulation at that time. With this objective achieved and an adequate supply of banknotes in other denominations, the production of Rs 2,000 banknotes ceased in 2018-19.
According to the RBI website, "A majority of the Rs 2,000 denomination notes were issued prior to March 2017 and have reached the end of their estimated lifespan of 4-5 years. Additionally, it has been observed that this denomination is not commonly used for transactions. Furthermore, the stock of banknotes in other denominations continues to be sufficient to meet the currency requirements of the public."
In summary, the RBI's extension of the deadline for Rs 2,000 banknote exchange comes with new procedures and is driven by the evolving currency landscape and usage patterns.