October 7 deadline to exchange ₹2,000 notes

Banks asked not to accept ₹2,000 notes from October 8, but they will continue to be legal tender; 96% of the ₹3.56 lakh worth of these notes in circulation on May 19 have been returned, RBI says

September 30, 2023 05:14 pm | Updated October 01, 2023 10:49 am IST

File picture of a bank customer depositing ₹2,000 currency note

File picture of a bank customer depositing ₹2,000 currency note | Photo Credit: R. Ragu

With about ₹0.14 lakh crore worth of ₹2,000 notes still not having found their way back into the banking system as on September 29, a day before the stipulated deadline for the general public to exchange or deposit the notes at bank branches, the Reserve Bank of India (RBI) has decided to extend the deadline to October 7.

On Saturday, the RBI issued fresh instructions to banks not to receive any ₹2,000 currency notes from October 8 onwards. Members of the public have been advised to deposit or exchange their notes without any further delay.

However, the central bank reiterated that ₹2,000 banknotes will continue to be legal tender. It had announced the withdrawal of these notes from circulation on May 19 this year.

96% returned

“According to the data received from banks, of the total value of ₹3.56 lakh crore of ₹2,000 banknotes in circulation as on May 19, 2023, ₹3.42 lakh crore has been received back leaving only ₹0.14 lakh crore in circulation as at the close of business on September 29, 2023,” the RBI said in a circular. “Thus, 96% of the ₹2,000 banknotes in circulation as on May 19, 2023 has since been returned,” it added. 

“As the period specified for the withdrawal process has come to an end, and based on a review, it has been decided to extend the current arrangement for deposit / exchange of ₹2000 banknotes until October 07, 2023,” it announced. 

Procedures for later exchange

With effect from October 8, ₹2,000 banknotes can continue to be exchanged by individuals and entities at 19 RBI Issue Offices, with a limit of ₹20,000 at a time. These notes can also be tendered at these 19 offices for credit to their bank accounts in India for any amount. Individuals and entities from within the country can also send these notes through India Post, addressed to any of the 19 offices for credit to their bank accounts in India, and such exchange or credit will be subject to relevant RBI and government regulations, and may require the submission of valid identity documents and due diligence as deemed fit by the central bank.

The RBI added that courts, law enforcement agencies, government departments, or any other public authority involved in investigation proceedings or enforcement, may, as and when required, deposit or exchange ₹2,000 banknotes at any of the 19 offices without any limit.

These 19 RBI offices are located at Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram.

The article has been corrected for a factual error

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