As the deadline for depositing/exchanging Rs 2,000 currency notes is almost up, with the Reserve Bank of India (RBI) set to conclude the acceptance of these high-value notes on 30th September 2023.
The Reserve Bank of India had announce the withdrawal of Rs 2,000 notes from circulation in May 2023 as part of its ‘clean note policy.‘
But the RBI hasn’t explicitly said that Rs 2,000 notes will cease to be legal tender after the deadline, it’s clear that the central bank intends to withdraw these notes from circulation as soon as possible.
So the main question is what happens after 30th September 2023?
At the time of announcing the withdrawal, the RBI said that it would determine the future status of Rs 2,000 notes based on the quantity return to/deposit in banks.
As per RBI report of 1st September 2023 :
"The total value of Rs 2,000 banknotes receive back from circulation is Rs 3.32 lakh crore up to 31st August, 2023."
Then RBI said that as of 31st August, 2023, only Rs 0.24 lakh crore worth of Rs 2,000 notes were in circulation.
Which indicates that 93% of the Rs 2,000 notes in circulation as of 19th May, 2023 have return to banks via exchange or account deposits.
The RBI is expect to provide an update on 1st October 2023, which may include clarification on the fate of the remaining Rs 2,000 notes still in circulation.
Over 90% of these notes have return, there’s a high probability that the RBI will announce a date when these currency notes will no longer be consider legal tender.
So, an official announcement from the RBI is await for a proper answer.
Returning Rs 2,000 notes has a simple process.
The RBI has said that people can deposit these notes at their respective banks without a specific limit.
But, standard Know Your Customer (KYC) requirements and other legal deposit regulations still apply.
People using Basic Savings Bank Deposit (BSBD) or Jan Dhan accounts, regular deposit limits will remain in effect.
If you wish to deposit Rs 2,000 notes exceeding a certain amount in these accounts, you must adhere to the prescribe limits.
Also, as per Rule 114B of the Income Tax Rules, individuals must provide their Permanent Account Number (PAN) when making cash deposits exceeding Rs 50,000 in a single day at either a bank or post office.
As of now, till 30th September 2023, people also have the option to exchange Rs 2,000 notes at 19 Regional Offices (ROs) of the RBI or any nearby bank branch.
As per RBI’s guidelines, exchanges should be carry out without the need for a request slip or ID proof.
NOTE : Some public sector banks may have different procedures in place, so it’s advisable to have an ID proof when exchanging these notes to ensure a smooth transaction.