The Reserve Bank of India (RBI) has stated that the facility to exchange or deposit Rs 2,000 banknotes will not be available on April 1 i.e. Monday. It is pertinent to mention that the Central Bank announced the withdrawal of Rs 2,000 denomination bank notes from circulation on May 19 last year. According to the RBI, around 97.62 per cent of the Rs 2,000 banknotes have already returned to the banking system at the close of business on February 29. Only around Rs 8,470 crore worth of the withdrawn notes are still with the public.
The RBI announced that the the exchange and deposit of Rs.2000 banknotes is not available on 1 April 2024 at 19 of its issuing offices. This facility will resume on 2 April 2024.
The government introduced Rs.2000 in 2016 after the demonetisation drive. On 19 May 2023, the Reserve Bank of India (RBI) announced that Rs.2000 note, India’s highest denomination currency, will be withdrawn from 30 September 2023. The RBI extended the last date to exchange or deposit Rs.2000 notes to 7 October 2023 from 30 September 2023. The RBI stated that withdrawing Rs.2000 was due to its ‘Clean Note Policy’
However, Rs.2000 will still remain legal tender after 7 October 2023. The RBI stated that people could visit their nearest bank branches and deposit or exchange their Rs.2000 banknotes by 7 October 2023. From 8 October, people can exchange or deposit Rs.2000 at 19 RBI Issue Offices up to a limit of Rs.20,000 at a time.
Total Rs.2000 notes printed by RBI
Around 89% of the Rs.2000 denomination notes were issued before March 2017. The total value of Rs.2000 banknotes in circulation has declined from Rs.3.56 lakh crore as on 19 May 2023, to Rs.8,470 crore as on 29 February 2024. It has been observed that Rs.2000 denomination currency is not commonly used for transactions. Further, the banknotes in other denominations continue to be adequate for meeting the currency requirements of the public.
Deposit limit of Rs.2000 notes
People can deposit Rs.2000 banknotes at the bank where they have an account. The RBI has stated that there is no deposit limit for Rs.2000 notes. But, the general KYC and other cash deposit statutory norms will apply. When a person deposits Rs.2000 notes in a Basic Savings Bank Deposit (BSBD) or Jan Dhan account, the usual limits will apply.
In this regard, Canara Bank has informed that they are giving a 100% waiver on cash remittance charges on Rs.2,000 denomination notes deposits. This applies to savings and current accounts.
As per Bule 114B of the Income Tax Rules, it is mandatory for an individual to quote the PAN number when the cash deposit in a single day with a post office or bank exceeds Rs.50,000. Thus, if a person wants to deposit Rs.2000 banknotes amounting to more than Rs.50,000 in a single day, he/she must quote the PAN number. Quoting the PAN is not mandatory when the amount deposited is below Rs.50,000 in a day.
Last date
The RBI has stated that people can approach the any bank or post office to deposit or exchange their Rs.2000 notes from 23 May 2023. The last date for the deposit or exchange of Rs.2000 notes was 30 September 2023, which is extended to 7 October 2023.
How to exchange Rs.2000 note in the bank?
People can also exchange Rs.2000 banknotes at any nearest bank branch from 23 May 2023 within 7 October 2023. For exchange of Rs.2000 notes before 7 October 2023, the RBI provided clear instruction that exchange of Rs.2000 notes can be done across the counter without insisting on a request slip or ID proof since these notes continue to be legal tender. However, certain public sector banks have adopted a different strategy.
Certain public sector banks have issued guidelines for the exchange Rs.2000 banknotes from non-account holders to submit identity proof mandatorily. Below is a list of a few banks that have issued instructions regarding ID proof for exchanging Rs.2000 notes by 7 October 2023.
FAQs
Why is the Rs 2000 note being exchanged?
The Reserve Bank of India (RBI) has announced the withdrawal of the Rs 2000 note from circulation. While the note remains legal tender, the RBI has advised people to exchange or deposit them in banks before the deadline. This measure is part of the ongoing efforts to streamline currency management.
How can I exchange Rs 2000 notes in the bank?
You can exchange Rs 2000 notes at any bank branch by visiting the counter and filling out a simple exchange form. You must present a valid government-issued ID proof (such as Aadhaar, PAN card, or voter ID) to complete the exchange process.
