In a significant move, the Reserve Bank of India (RBI) on Friday announced the withdrawal of Rs 2,000 notes from circulation, while ensuring that the existing notes would remain legal tender. According to the RBI statement, people can deposit or exchange their Rs 2,000 notes till September 30.
To avoid disruption, the RBI has advised banks to immediately stop issuing banknotes in the denomination of Rs 2,000. From May 23, individuals can exchange Rs 2,000 notes for other denominations up to a limit of Rs 20,000 at a time at the 19 regional offices (ROs) of the RBI, which have departments.
Sources told ANI that according to the RBI, a period of four months is considered sufficient for individuals to exchange their notes with banks. Most of the Rs 2000 notes currently in circulation are expected to be back in the banks within the stipulated time frame. This is a routine process by RBI, and according to sources, there is no need for the public to be worried.
RBI to withdraw Rs 2,000 notes: Key highlights
- Rs 2,000 bank notes to be phased out
- The existing Rs 2,000 note will continue to be legal tender
- Banks have been instructed to immediately stop issuing Rs 2000 notes
- Permission to deposit/exchange Rs 2,000 notes in banks till September 30, 2023
- Exchange facility for Rs 2,000 notes up to Rs 20,000 at a time
This move by RBI marks a significant development in the Indian monetary landscape and will impact individuals, businesses and financial institutions alike.
Why are Rs 2,000 currency notes being withdrawn?
The decision to withdraw Rs 2,000 bank notes was introduced in 2016 under Section 24(1) of the RBI Act, 1934 to meet urgent currency requirements after the demonetisation of Rs 500 and Rs 1,000 notes.
However, with the purpose being served and adequate availability of other denominations, the printing of Rs 2,000 notes stopped in 2018-19, according to a report. monocontrol Article.
According to RBI, about 89% of the Rs 2,000 denomination banknotes were issued before March 2017 and have reached their expected life of 4-5 years. The total value of these banknotes in circulation has come down from its peak of Rs 6.73 lakh crore as on March 31, 2018 (accounting for 37.3% of notes in circulation) to Rs 3.62 lakh crore, which is only Rs. is 10.8%. of March 31, 2023.
Additionally, this particular denomination is not generally used for daily transactions. RBI has observed that sufficient reserves of bank notes of other denominations exist to meet the demand for currency of the public.
Keeping these factors in mind and in line with RBI’s “Clean Note Policy”, it has been decided to withdraw the Rs 2,000 notes from circulation. The Clean Note Policy is a measure implemented by the Reserve Bank of India (RBI) to ensure circulation. Manufacture of high quality banknotes for the convenience and satisfaction of the public.
In January 2014, the RBI announced the withdrawal of all notes issued before 2005.
What is the legal tender status of Rs 2,000 notes?
While the withdrawal is aimed at streamlining operations, it ensures that the Rs 2,000 denomination remains valid for transactions. The legal tender status of Rs 2,000 notes remains unchanged.
Can Rs 2000 notes be used for regular transactions? What is the deadline?
Yes, Rs 2,000 notes can still be used for routine transactions. People are advised to use them as usual and can also accept them as payment. However, it has been recommended to deposit or exchange these bank notes till September 30, 2023.
How to deposit or exchange Rs 2000 notes?
Individuals are advised to visit their respective bank branches to deposit or exchange the Rs 2,000 denomination notes held by them. This facility will be available in all banks till September 30, 2023. In addition, the option to exchange these banknotes will also be available at 19 Regional Offices (ROs) of the Reserve Bank of India (RBI) which have issuing departments. deadline.
What is the limit for depositing Rs 2,000 notes in bank accounts?
Deposits in bank accounts can be made without any restrictions, subject to compliance with applicable KYC norms and regulatory requirements.
What is the exchange limit for Rs 2,000 notes?
People can exchange Rs 2,000 banknotes up to a limit of Rs 20,000 at a time.
How to deposit cash above Rs 20,000 for business or other purposes?
Deposits can be made without restrictions, and cash can be withdrawn against these deposits to meet high cash requirements.
Can Rs 2,000 notes be exchanged through Business Correspondents (BCs)?
Yes, Rs 2,000 notes can be exchanged through BCs, with a limit of Rs 4,000 per day for account holders.
When will the cash exchange facility be available?
The exchange facility will be available at bank branches and Regional Offices (ROs) of RBI from May 23, 2023.
Is it necessary to be a bank customer to exchange Rs 2,000 note?
No, even non-account holders can exchange Rs 2,000 notes up to a limit of Rs 20,000 at any bank branch.
Will there be a service charge for exchanging Rs 2000 notes?
No, exchange facility is provided free of charge.
Special arrangements for senior citizens and persons with disabilities?
Banks have been instructed to make special arrangements to minimize inconvenience to senior citizens and persons with disabilities during the exchange and deposit process.
Can’t exchange or deposit Rs 2000 notes immediately? do not worry
If people are unable to deposit or exchange their Rs 2,000 notes immediately, they need not worry. RBI has allowed a liberal period of over four months for deposit and/or exchange processing. It is advised that the members of public avail this facility at their convenience within the prescribed time limit.
RBI’s complaint resolution process for Rs 2000 notes, full details
In the rare event that a bank refuses to exchange, accept or deposit Rs 2,000 notes, individuals can seek redressal by following the grievance redressal process. They should initially approach the concerned bank and lodge a complaint.
If the bank does not respond within 30 days or if the solution provided is unsatisfactory, the individual may escalate the matter by filing a complaint under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021. Complaints can be lodged through the complaint management of RBI. System Portal (cms.rbi.org.in).