The Reserve Bank of India (RBI) has announced that the Rs 2,000 banknotes will no longer be in circulation. However, the central bank has reaffirmed that the Rs. 2000 banknotes will continue to be legal tender.
“To give time to the banks to make preparatory arrangements, members of the public are requested to approach the bank branches or ROs of RBI from May 23, 2023 for availing exchange facility,” RBI stated in its FAQs on the withdrawal of Rs 2,000 notes.
The Reserve Bank of India has decided to pull the Rs 2000 denomination banknotes from circulation in accordance with its “Clean Note Policy“.
According to the RBI press release date May 19, 2023, “ members of the public may deposit Rs 2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch. 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 ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs 2000 banknotes into banknotes of other denominations can be made upto a limit of Rs 20,000/- at a time at any bank starting from May 23, 2023,” RBI stated further.
According to the HDFC Bank’s mail to its customers, “We offer a hassle-free exchange service at any HDFC Bank branch from May’23, 2023 onwards until September 30, 2023, allowing you to get your ?2000 banknotes exchanged with a per day limit of Rs. 20,000.”
What is Clean Note Policy?
It is a policy adopted by RBI to ensure availability of good quality banknotes to the members of public.
Does the legal tender status of Rs 2000 banknotes remain?
Yes. The Rs 2000 banknote will continue to maintain its legal tender status.
Can Rs 2000 banknotes be used for normal transactions?
Yes. Members of the public can continue to use Rs 2000 banknotes for their transactions and also receive them in payment. However, they are encouraged to deposit and/or exchange these banknotes on or before September 30, 2023.
What if someone needs more than Rs 20,000/- cash for business or other purposes?
Deposit into accounts can be made without restrictions. The Rs 2000 banknotes can be deposited into bank accounts and cash requirements can be drawn thereafter, against these deposits.
Is there any fee to be paid for the exchange facility?
No. The exchange facility shall be provided free of cost.
What will happen if one cannot deposit / exchange Rs2000 banknote immediately?
To make the entire process smooth and convenient for the public, a period of over four months has been given for deposit and/or exchange of Rs2000 banknotes. Members of the public, are therefore, encouraged to avail this facility at their convenience within the allotted time.
