The Reserve Bank of India (RBI) has extended the deadline for exchanging or depositing Rs 2000 banknotes, which were removed from circulation in May, until October 7. These notes will remain legal tender.
As of September 29, 2023, out of the total Rs 3.56 lakh crore worth of Rs 2000 banknotes in circulation on May 19, 2023, Rs 3.42 lakh crore has been returned, leaving only Rs 0.14 lakh crore in circulation.
After October 8, the option to deposit or exchange these notes at bank branches will cease. Individuals and entities can still exchange them, up to Rs 20,000 at a time, at the 19 RBI Issue Offices or through India Post, addressed to any of the 19 RBI Issue Offices, for credit to their bank accounts in India.
Courts, law enforcement agencies, government departments, and other public authorities engaged in investigations or enforcement can deposit or exchange Rs 2,000 banknotes at any of the 19 RBI Issue Offices without any prescribed limit.
The general public can exchange Rs 2,000 banknotes, with a maximum limit of Rs 20,000 per transaction.
If a bank declines to exchange or accept a deposit of Rs 2,000 banknotes, individuals can follow the RBI’s grievance redressal procedure as detailed on the RBI website. This process involves initially contacting the respective bank. If the bank doesn’t respond within 30 days of filing the complaint or if the complainant remains dissatisfied 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, using the Complaint Management System portal of RBI.
The Rs 2,000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934, primarily to swiftly fulfill the currency demands of the economy following the demonetization of all Rs 500 and Rs 1000 banknotes in circulation at that time. Once this objective was accomplished and an adequate supply of banknotes in other denominations became available, the production of Rs 2,000 banknotes ceased in 2018-19.
According to the RBI website, The majority of Rs 2,000 denomination notes were issued prior to March 2017 and have now reached the end of their estimated lifespan of 4-5 years. Additionally, it has been noted that this denomination is not frequently used for transactions. Moreover, the inventory of banknotes in other denominations remains sufficient to meet the currency needs of the public.