RBI’s deadline to exchange ₹2,000 notes ended on October 7. What happens now
The Reserve Bank of India’s deadline for exchange/deposit of ₹2,000 currency notes ended on October 7. The central bank as of now has not made any announcement on extending the deadline.
Earlier, the RBI had given a four-month time frame for people to deposit or exchange their ₹2,000 notes at the nearest bank, this after the notes were withdrawn from circulation on May 19. The notes were withdrawn from circulation six years after being introduced by the Narendra Modi government through its demonetisation drive.
On September 30, the RBI extended the deadline for the exchange/deposit of ₹2,000 notes till October 7. With no announcement related to extension of deadline, here’s what happens now:-
With effect from October 8, 2023, the banks shall stop accepting ₹2000 banknotes for credit to accounts or exchange to other denomination banknotes.
The ₹2000 banknotes shall continue to be allowed to be presented at the 19 Regional Offices of RBI having Issue Departments (RBI Issue offices) for credit to the bank accounts in India or exchange as indicated in the Press Release.
All instructions issued under para 3A of our circular DCM(Plg)No.S-236/10.27.00/2023-24 dated May 19, 2023 in the matter shall continue to remain in force. Banks shall also ensure that ₹2000 banknotes collected by their branches till October 07, 2023, are deposited at currency chests on or before October 13, 2023, the RBI said.
The ₹2000 banknotes shall continue to be legal tender. A copy of the Press Release may also be displayed in the banking hall, ATM kiosks, etc., for information of the customers / public.
The objective of introducing ₹2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of ₹2000 banknotes was stopped in 2018-19.
The total value of ₹2000 banknotes in circulation was ₹3.56 lakh crore at the close of business on May 19, 2023 – the date on which RBI decided to withdraw the banknote.