Reserve Bank of India on Friday said that it has decided to withdraw Rs 2,000 denomination banknotes from circulation. So, the notes will continue as legal tender, the central bank said in a statement.
RBI further said that the general public can deposit Rs 2,000 banknotes into bank accounts and/or exchange them into banknotes of other denominations at any bank branch.
As per RBI Statement :
“Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions,”.
In order to complete the exercise in a timely manner and to provide adequate time to the public, all banks will be able to offer deposit and/or exchange facility for Rs 2,000 banknotes until 30th September, 2023, Reserve Bank of India said.
People are encourage to deposit and/or exchange these banknotes on or before 30th September, 2023, said Reserve Bank of India.
The Reserve Bank of India has not specified if Rs 2,000 note will be valid or not after 30th September 2023.
But, given the deadline for the public to return the notes is 30th September 2023, the question arises if the note will be valid after that date or not.
The bank also said that deposit into accounts can be made without restrictions.
The Rs 2,000 banknotes can be deposite into bank accounts and cash requirements can be drawn thereafter, against these deposits.
RBI also said that banks have been instruct to make arrangements to reduce inconvenience to the senior citizens, persons with disabilities and others, seeking to exchange/deposit Rs 2,000 banknotes.
RBI also highlight that a non-account holder can exchange Rs 2,000 banknotes up to a limit of Rs 20,000 at a time at any bank branch.
The central bank also mention that general public won’t have to pay any fee to avail the exchange facility.
As per RBI Statement :
“About 89% of the Rs 2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on 31st March, 2018 (37.3% of notes in circulation) to Rs 3.62 lakh crore constituting only 10.8% of notes in circulation on 31st March, 2023. It has also been observe that this denomination is not commonly use for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public,”.
