Mumbai:

The Reserve Bank of India on Tuesday said 98 per cent of the Rs 2,000 denomination notes have been returned since its May 2023 move to withdraw the currency notes.

The total value of notes of the denomination has reduced to Rs 7,117 crore from Rs 3.56 lakh crore on May 19, 2023, the central bank said.

“98 per cent of the Rs 2000 banknotes in circulation as of May 19, 2023, has since been returned,” the RBI said.

On May 19, 2023, the RBI announced a surprise decision to withdraw the Rs 2,000 currency notes. The move was prompted by quality concerns and the denomination introduced after the demonetisation of November 2016 fulfilling its purpose.

The central bank said Rs 2,000 notes continue to be legal tender and can be exchanged at 19 issue offices of the RBI either physically or sent by post for credit into bank accounts.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

The last day for returning or exchanging Rs 2,000 denomination banknote is today. According to the Reserve Bank of India (RBI), from October 1, the Rs 2,000 currency note will cease to have its value and will be just another piece of paper. This comes months after the central bank announced that the Rs 2,000 denomination banknotes would be taken out of circulation. Notably, the RBI started printing the Rs 2,000 note in November 2016 after Prime Minister Narendra Modi scrapped high-value Rs 1,000 and Rs 500 notes overnight.

Now, here’s what will happen to Rs 2,000 currency note after today’s deadline:

According to RBI, the Rs 2,000 currency note will remain legal tender even after the September 30 deadline, however, they will not be accepted for transactions. After today, the notes can only be exchanged with the RBI. 

Therefore, today marks the final opportunity for people to exchange or deposit Rs 2,000 notes at their respective banks without any specific limit. A non-account holder could also exchange the banknotes up to a limit of Rs 20,000 at a time at any bank branch.

However, it is important to note that the usual KYC (Know Your Customer) requirements and other legal deposit norms will still be applicable.

How to exchange Rs 2,000 notes

Individuals have the facility to exchange Rs 2000 notes at 19 Regional Offices (ROs) of the RBI. Besides that, one can also exchange Rs 2000 banknotes at any nearby bank branch. 

According to RBI’s guidelines, as these notes are legal tender, the exchange should be done without the requirement of a request slip or ID proof. However, some public sector banks have implemented a different approach. Therefore, it is advisable to have an ID proof handy when exchanging this currency to ensure a smooth transaction.

Meanwhile, earlier this year, the RBI announced that about 93% of the Rs 2,000 banknotes have returned to the banking system since the central bank in May decided to withdraw the high-value note from circulation. 

 

New Delhi:

The Rs 2,000 denomination banknote will cease to have its value after Saturday and will be just another piece of paper if one does not get it exchanged in any bank, the Reserve Bank of India (RBI) clarified on Friday. 

The RBI had earlier fixed September 30, 2023, as the last date for the purpose of completing the exercise in a time-bound manner and to provide adequate time to the public.

Earlier last month, the RBI said that about 93 per cent of the Rs 2,000 banknotes have returned to the banking system since the central bank in May decided to withdraw the high-value note from circulation.

People were directed to exchange or deposit their Rs 2,000 notes in bank branches and regional branches of RBI. A non-account holder could also exchange Rs 2000 banknotes up to a limit of Rs 20,000 at a time at any bank branch.

On May 19, the RBI decided to withdraw the Rs 2000 denomination banknotes from circulation but said it would continue to remain as legal tender. However, RBI had advised banks to stop issuing such banknotes with immediate effect.

The Rs 2000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time.

The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of Rs 2000 banknotes was stopped in 2018-19.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)