Getty ImagesThe Reserve Bank of India, in its press release dated September 30, 2023, has clarified what will happen to Rs 2,000 notes once the new deadline of October 7, 2023, expires. The central bank has extended the deadline to deposit and/or exchange Rs 2000 currency notes from September 30, 2023, earlier to October 7, 2023 now.
According to the press release, the following will happen from October 8, 2023:
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.
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.
The RBI, in its notification dated May 19, 2023, withdrew the circulation of Rs 2000 notes. The RBI asked the general public to exchange and/or deposit the Rs 2000 banknotes in the bank and/or at 19 regional offices of RBI. The public was asked to do the same by September 30, 2023. The initial notification did not clarify what would happen to Rs 2000 banknotes after September 30, 2023. It is important to note that RBI has not withdrawn the legal tender status of Rs 2000. In the press release, RBI said that Rs 2000 banknotes shall continue to be legal tender.
The facility for deposit/exchange of Rs 2000 banknotes at the 19 RBI Issue Offices shall be available till further advice. Public is advised to deposit / exchange the Rs 2000 banknotes without any further delay.
What did the press release say?
The Reserve Bank of India (RBI) had announced the withdrawal of Rs 2000 banknotes from circulation vide Press Release 2023-2024/257 dated May 19, 2023. In order to complete the exercise in a time-bound manner and to provide adequate time to members of the public, the banks were advised to provide deposit and/or exchange facility for Rs 2000 banknotes until September 30, 2023. The exchange facility was also made available at the 19 Regional Offices (ROs) of RBI having Issue Departments (RBI Issue Offices).
The RBI has been keeping members of the public informed about the status of the withdrawal exercise through monthly Press Releases. According to the data received from banks, of the total value of Rs 3.56 lakh crore of Rs 2000 banknotes in circulation as on May 19, 2023, Rs 3.42 lakh crore has been received back leaving only Rs 0.14 lakh crore in circulation as at the close of business on September 29, 2023. Thus, 96% of the Rs 2000 banknotes in circulation as on May 19, 2023 has since been returned.
According to the press release, the following will happen from October 8, 2023:
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 Rs 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.
The RBI, in its notification dated May 19, 2023, withdrew the circulation of Rs 2000 notes. The RBI asked the general public to exchange and/or deposit the Rs 2000 banknotes in the bank and/or at 19 regional offices of RBI. The public was asked to do the same by September 30, 2023. The initial notification did not clarify what would happen to Rs 2000 banknotes after September 30, 2023. It is important to note that RBI has not withdrawn the legal tender status of Rs 2000. In the press release, RBI said that Rs 2000 banknotes shall continue to be legal tender.
The facility for deposit/exchange of Rs 2000 banknotes at the 19 RBI Issue Offices shall be available till further advice. Public is advised to deposit / exchange the Rs 2000 banknotes without any further delay.
What did the press release say?
The Reserve Bank of India (RBI) had announced the withdrawal of Rs 2000 banknotes from circulation vide Press Release 2023-2024/257 dated May 19, 2023. In order to complete the exercise in a time-bound manner and to provide adequate time to members of the public, the banks were advised to provide deposit and/or exchange facility for Rs 2000 banknotes until September 30, 2023. The exchange facility was also made available at the 19 Regional Offices (ROs) of RBI having Issue Departments (RBI Issue Offices).
The RBI has been keeping members of the public informed about the status of the withdrawal exercise through monthly Press Releases. According to the data received from banks, of the total value of Rs 3.56 lakh crore of Rs 2000 banknotes in circulation as on May 19, 2023, Rs 3.42 lakh crore has been received back leaving only Rs 0.14 lakh crore in circulation as at the close of business on September 29, 2023. Thus, 96% of the Rs 2000 banknotes in circulation as on May 19, 2023 has since been returned.
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