The Reserve Bank of India (RBI) had earlier announced the withdrawal of ₹2000 banknotes from circulation. To ensure a smooth transition, RBI provided a deadline for depositing and exchanging these banknotes. However, based on a recent review, RBI has decided to extend the withdrawal deadline. Here are the key details of this extension and what it means for the public.
Key Highlights of the RBI Circular:
Withdrawal Extension: Initially, the deadline for depositing or exchanging ₹2000 banknotes was set for September 30, 2023. However, as per the recent circular, RBI has extended this deadline until October 7, 2023. This extension provides individuals and entities with additional time to complete the process.
Statistics on ₹2000 Banknotes: As of May 19, 2023, there were ₹3.56 lakh crore worth of ₹2000 banknotes in circulation. However, as of September 29, 2023, ₹3.42 lakh crore of these banknotes have been returned to the banking system. This means that 96% of the ₹2000 banknotes in circulation have been accounted for.
Revised Procedure: Starting from October 8, 2023, banks will no longer accept ₹2000 banknotes for credit to accounts or exchange for other denomination banknotes. Instead, individuals and entities can still exchange ₹2000 banknotes at the 19 RBI Issue Offices, with a limit of ₹20,000 at a time. These notes can also be deposited into Indian bank accounts.
Legal Tender Status: It’s important to note that ₹2000 banknotes will continue to be legal tender even after the withdrawal deadline. This means they can still be used for transactions where they are accepted.
Ongoing Instructions: All instructions issued in previous circulars regarding the withdrawal of ₹2000 banknotes remain in force. Banks are also required to ensure that ₹2000 banknotes collected by their branches until October 7, 2023, are deposited at currency chests on or before October 13, 2023.
Conclusion: The RBI’s decision to extend the withdrawal deadline for ₹2000 banknotes aims to facilitate a smoother transition for the public. It allows individuals and entities more time to complete the process of depositing or exchanging these banknotes. It’s essential for the public to be aware of these changes and take appropriate action within the stipulated timeline.
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Reserve Bank of India
₹2000 Denomination Banknotes – Withdrawal from Circulation – Review
Dated: September 30, 2023
The Reserve Bank of India (RBI) had announced the withdrawal of ₹2000 banknotes from circulation vide Press Release 2023-2024/257 dated May 19, 2023. In order to complete the exercise in a time bound manner and to provide adequate time to members of the public, the banks were advised to provide deposit and / or exchange facility for ₹2000 banknotes until September 30, 2023. The exchange facility was also made available at the 19 Regional Offices (ROs) of RBI having Issue Departments (RBI Issue Offices)1. The RBI has been keeping members of the public informed about the status of the withdrawal exercise through monthly Press Releases.
2. According to the data received from banks, of the total value of ₹3.56 lakh crore of ₹2000 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. Thus, 96% of the ₹2000 banknotes in circulation as on May 19, 2023 has since been returned.
3. 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. With effect from October 08, 2023, the procedure for deposit / exchange of ₹2000 banknotes shall be as under:
a. The deposit / exchange at bank branches shall be stopped.
b. ₹2000 banknotes can continue to be exchanged by individuals / entities at the 19 RBI Issue Offices up to a limit of ₹20,000/- at a time.
c. Individuals / Entities can tender ₹2000 banknotes at the 19 RBI Issue Offices for credit to their bank accounts in India for any amount.
d. Individuals / Entities from within the country can also send ₹2000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices for credit to their bank accounts in India.
e. Such exchange or credit shall be subject to relevant RBI / Government regulations, submission of valid identity documents and due diligence as deemed fit by RBI.
f. Courts, law enforcement agencies, government departments or any other public authority involved in investigation proceedings or enforcement, may, as and when required, deposit / exchange ₹2000 banknotes at any of the 19 RBI Issue Offices without any limit.
4. ₹2000 banknotes shall continue to be legal tender.
5. The above facility for deposit / exchange of ₹2000 banknotes at the 19 RBI Issue Offices shall be available till further advice.
6. Members of the public are advised to deposit / exchange the ₹2000 banknotes without any further delay.
7. An updated document on Frequently Asked Questions (FAQs) in the matter has been hosted on the RBI website for information and convenience of the public.
(Yogesh Dayal)
Chief General Manager
Press Release: 2023-2024/1025
Notes
1 Ahmedabad, Bangalore, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram.
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Reserve Bank of India
RBI/2023-24/64
DCM(Plg) No. S-1288/10.27.00/2023-24 Dated: September 30, 2023
The Chairman / Managing Director / Chief Executive Officer
All Banks
Madam / Dear Sir,
₹2000 Denomination Banknotes – Withdrawal from Circulation – Review
A reference is invited to our circulars DCM(Plg)No.S-236/10.27.00/2023-24 dated May 19, 2023 and DCM(Plg)No.S-239/10.27.00/2023-24 dated May 22, 2023 on the subject.
2. Of the total value of 23.56 lakh crore of ₹2000 banknotes in circulation as on May 19, 2023, 23.42 lakh crore has been received back leaving only 20.14 lakh crore in circulation as at the close of business on September 29, 2023; thus, 96% of ₹2000 banknotes in circulation as on May 19, 2023 has since been returned.
3. As the period specified for the withdrawal 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. A Press Release in the matter has been issued. Banks shall continue to maintain daily data on deposit / exchange of ₹2000 banknotes in the format prescribed vide circular dated May 22, 2023 referred to above and submit the same to RBI.
4. With effect from October 8, 2023, banks shall stop accepting ₹2000 banknotes for credit to accounts or exchange to other denomination banknotes.
5. ₹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.
6. 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.
7. ₹2000 banknotes shall continue to be legal tender.
8. A copy of the Press Release may also be displayed in the banking hall, ATM kiosks, etc., for information of the customers / public.
9. You are requested to issue suitable instructions to the branches in this regard. Please acknowledge receipt.
Yours faithfully
Sd/-
(Suman Ray)
Chief General Manager in-Charge
