The Reserve Bank of India has made an important announcement regarding the Rs. 2000 notes. On May 19, 2023, the RBI announced that they’d decided to withdraw Rs. 2000 notes from circulation. The apex bank has advised all Rs. 2000 noteholders to exchange or deposit their notes.
Following Section 24 (1) of the RBI Act 1934, the Reserve Bank of India introduced the Rs. 2000 notes in November 2016. This act’s primary objective is to quickly fulfill the currency need following the removal of the legal tender status of all 500 and 1000 banknotes in use at the time.
The withdrawal of banknotes with a value of Rs 2000 from circulation as part of the “Clean Note Policy” of the Reserve Bank of India. However, these notes will continue to be legal tender. So here are all the updates and information regarding this matter.
Is ID proof is Required to Exchange Rs. 2000 Notes
After the RBI announced that it would discontinue the notes of the Rs. 2000 denomination, several rumours regarding the need for ID proof are spreading all across social media. These rumours claim that an ID proof is required to deposit or exchange notes in the bank, but this is not true.
“No identity proof is required to be submitted by the tenderer at the time of exchange.” The SBI Chief General Manager (Operations), Muralidharan, said
Last Date to exchange Rs 2000 Notes
The Reserve Bank of India has clearly stated that citizens can start exchanging Rs. 2000 notes on May 23, 2023. While the exchange period of these notes will be limited, all people are expected to exchange the notes before September 30, 2023.
Also, all the people need to pay special attention to the fact that there will be no exchange fee for the notes. No bank or other institution can charge any extra amount in return for the exchange.
Rs 2000 Notes Exchange Limit
All the people who want to exchange their Rs. 2000 notes need to keep in mind that there is a limit to the number of notes that can be exchanged at a time. The Reserve Bank of India has set this restriction that the public can exchange Rs 2000 banknotes up to a limit of Rs 20,000 at a time, and that can be done through business correspondents (BCs) up to a limit of Rs 4000 each day for an account holder.
Where to Exchange Rs 2000 Notes?
According to a Reserve Bank of India circular, individuals can deposit Rs. 2000 notes in accounts in their names. Deposits of 2000 banknotes can be made normally, that is, without limits and subject to adhering to the relevant Know Your Customer (KYC) rules and other applicable legislative requirements.
Commercial banks have also been advised by the apex bank to adhere to the standards for cash transaction reporting (CTR) and suspicious transaction reporting (STR).
While the facility for the exchange of 2000 banknotes will be provided to all members of the public by all banks through their branches, For people who live in remote or unbaked areas, the banks need to consider using mobile vans.
The usual restrictions also apply to those who want to deposit the value of 2000 notes in Jan Dhan Yojna or Basic Savings Bank Deposit (BSBD) accounts. The Reserve Bank of India has given banks specific instructions on how to minimize the inconvenience for elderly people, those with impairments, and women who want to exchange or deposit 2000 notes.
What will happen if you forget to Exchange Your Notes?
The RBI advised people to exchange their money within a designated time frame. The RBI Circular read, “To ensure convenience for the public, a period of over four months has been provided for depositing and exchanging Rs 2000 banknotes. Members of the public are encouraged to utilise this facility at their convenience within the specified time frame.” If one fails to deposit or exchange their Rs. 2000 notes on time, then the value of their notes will be decreased to zero, and those notes will be of no use.
What is Clean Note Policy?
The Reserve Bank of India stated in the circular that notes of Rs. 2000 denomination will be withheld, and one of the biggest reasons behind this decision is the “Clean Note Policy” of the Reserve Bank of India. The Clean Note Policy of the RBI is to ensure the availability of good-quality banknotes to the general public.
The Clean Note Policy was introduced by the RBI in 1988. This policy had an incredible impact on the Indian economy. It motivated people to deposit their old notes and withdraw new ones.
The majority of the 2000-denomination notes were printed before March 2017 and are already nearing the end of their predicted lifespan of 4-5 years, which was another factor in this decision. Additionally, it has been noted that transactions involving this denomination are uncommon. Additionally, the supply of banknotes in other denominations is still sufficient to meet the public’s needs for currency.
A. People can start exchanging or depositing their notes of Rs. 2000 denomination by May 23, 2023.
A. The last day to exchange or deposit Rs. 2000 notes is before September 30, 2023.
A. No, there are no extra fees to pay for the exchange or deposit facility.
A. The notes of Rs. 2000 denomination can be exchanged through any commercial bank or through business correspondents (BCs).
A. The Reserve Bank of India has set this restriction that the public can exchange Rs 2000 banknotes up to a limit of Rs 20,000 at a time.
A. Due to RBI’s Clean Note Policy Rs 2000 notes being withdrawn.