Last date to exchange Rs 2,000 bank notes extended by RBI; see all details

The Reserve Bank of India has postponed the deadline for the exchange or deposit of Rs 2,000 notes from September 30, 2023, to October 7, 2023.

In a press release issued by the RBI on September 30, 2023, it was announced that due to the expiration of the withdrawal period, the current arrangement for depositing or exchanging Rs 2,000 banknotes would be extended until October 7, 2023.

It is important to note that Rs 2,000 banknotes will remain legal tender.

New procedures effective from October 8, 2023 for depositing or exchanging Rs 2,000 banknotes

a) Deposits or exchanges at bank branches will no longer be accepted.
b) Individuals and entities can exchange Rs 2,000 banknotes at the 19 RBI Issue Offices, with a limit of Rs 20,000 per transaction.
c) Individuals and entities can also deposit Rs 2,000 banknotes at the 19 RBI Issue Offices and credit them to their Indian bank accounts.
d) Domestic individuals and entities have the option to send Rs 2,000 banknotes via India Post to any of the 19 RBI Issue Offices for crediting to their bank accounts in India.
e) These transactions are subject to relevant RBI and government regulations, requiring valid identity documents and compliance with RBI's due diligence procedures.
f) 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 set limit.

Exchange Limit

The general public can exchange Rs 2,000 banknotes up to a maximum limit of Rs 20,000 per transaction.

In the event that a bank refuses to exchange or accept a deposit of Rs 2,000 banknotes, individuals can seek recourse as per the RBI website, which states, "For redressal of grievances due to deficient service, complainants or aggrieved customers may initially approach the concerned bank. 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Why are Rs 2,000 denomination banknotes being withdrawn?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 quickly meeting the currency requirements of the economy following the demonetisation of all Rs 500 and Rs 1000 banknotes in circulation at that time. After achieving this objective and with an ample supply of banknotes in other denominations, the production of Rs 2,000 banknotes ceased in 2018-19.

As per 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."

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