The Reserve Bank of India (RBI) has announced the withdrawal of Rs 2,000 denomination banknotes from circulation while clarifying that existing Rs 2,000 notes will remain legal tender. To facilitate operational convenience and prevent disruptions at bank branches, individuals can exchange Rs 2,000 notes for other denominations up to a limit of Rs 20,000 at a time, starting from May 23, 2023. The RBI has provided further details and clarifications regarding its decision to withdraw Rs 2000 note.
Here is a list of frequently asked questions you need to know according to the RBI
Why are Rs 2000 denomination banknotes being withdrawn?
The Rs 2000 denomination banknote was introduced in November 2016 primarily to meet the currency requirement of the economy after the withdrawal of Rs 500 and Rs 1000 banknotes. RBI said, “Printing of Rs 2000 banknotes was stopped in 2018-19 as the objective was fulfilled and other denominations were available in sufficient quantity. The majority of the Rs 2000 notes issued before March 2017 have completed their estimated lifespan and are not commonly used for transactions.”
Hence, in line with the “Clean Note Policy,” the decision to withdraw Rs 2000 banknotes from circulation has been made, the central bank said.
Also Read: Here Is How You Can Exchange Rs 2000 Notes From Banks. Check Details
What will happen if a bank refuses to exchange/accept a deposit of Rs 2000 banknote?
RBI said that in case of any deficiency in service, the complainant/agrieved customer can first approach the concerned bank. If the bank does not respond within 30 days or the complainant is not satisfied with the response/resolution, they can lodge a complaint under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 through the Complaint Management System portal of RBI (cms.rbi.org.in).
What will happen if one cannot deposit/exchange Rs 2000 banknote immediately?
RBI said, “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 utilize this facility at their convenience within the specified time frame.”
Also Read: RBI To Withdraw Rs 2,000 Currency Notes From Circulation, To Be Legal Tender Till September 30
What is Clean Note Policy?
Clean Note Policy is a policy adopted by the Reserve Bank of India (RBI) to ensure the availability of good quality banknotes to the public.
Does the legal tender status of Rs 2000 banknotes remain?
Yes, RBI said that the Rs 2000 banknote will continue to maintain its legal tender status.
Can Rs 2000 banknotes be used for normal transactions?
RBI said, “Yes, members of the public can continue to use Rs 2000 banknotes for their transactions and receive them in payment. However, it is encouraged to deposit or exchange these banknotes by September 30, 2023.”
What should the public do with the Rs 2000 denomination banknotes they hold?
RBI said that members of the public can approach bank branches to deposit or exchange their Rs 2000 banknotes.
“The facility for depositing into accounts and exchanging Rs 2000 banknotes will be available at all banks until September 30, 2023. The facility for exchange will also be available at the 19 Regional Offices (ROs) of RBI with Issue Departments until September 30, 2023,” the central bank said.
Is there a limit on depositing Rs 2000 banknotes into a bank account?
There are no restrictions on depositing Rs 2000 banknotes into bank accounts, subject to compliance with KYC norms and other applicable statutory/regulatory requirements.
Is there an operational limit on the amount of Rs 2000 banknotes that can be exchanged?
Members of the public can exchange Rs 2000 banknotes up to a limit of Rs 20,000 at a time.
Can Rs 2000 banknotes be exchanged through Business Correspondents (BCs)?
Yes, exchange of Rs 2000 banknotes can be made through BCs up to a limit of Rs 4000 per day for an account holder.
From which date will the exchange facility be available?
Members of the public can approach bank branches or RBI’s Regional Offices from May 23, 2023, for availing the exchange facility.
Is it necessary to be a customer of the bank to exchange Rs 2000 banknotes from its branches?
No, RBI said, “Even non-account holders can exchange Rs 2000 banknotes up to a limit of Rs 20,000 at any bank branch.”
What if someone needs more than Rs 20,000 cash for business or other purposes?
RBI said that there are no restrictions on depositing into accounts. Rs 2000 banknotes can be deposited into bank accounts, and cash withdrawals can be made against these deposits.
Is there any fee to be paid for the exchange facility?
No, the exchange facility will be provided free of cost.
Will there be special arrangements for senior citizens, persons with disabilities, etc., for exchange and deposit?
RBI has instructed Banks to make arrangements to minimize inconvenience for senior citizens, persons with disabilities, etc., who are seeking to exchange or deposit Rs 2000 banknotes.