The Reserve Bank of India (RBI) decided to withdraw the ₹2,000 denomination on May 19. The banknotes have been removed from circulation in pursuance of its “Clean Note Policy”. However, ₹2,000 notes will continue to be legal tender. Notes were similarly withdrawn from circulation in 2013-2014.
in memory of demonetisation On days when the banking channel was overwhelmed by huge rush at branches to exchange bank notes, the decision to withdraw ₹2,000 notes is also likely to strain the system apart from causing anxiety and inconvenience to the public.
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The central bank has advised the public to deposit ₹2,000 notes in their bank accounts and/or exchange them for notes of other denominations at any branch.
“Deposits in bank accounts can be made in the normal manner, i.e. without any restrictions and subject to extant instructions and other applicable statutory provisions,” RBI said.
₹20,000 limit
For operational convenience and to avoid disruption to the regular activities of banks, with effect from May 23, 2023, ₹2,000 notes can be exchanged for banknotes of other denominations at any bank to the extent of ₹20,000 at a time.
In order to complete the exercise in a time-bound manner and to provide sufficient time to members of the public, all banks have been directed to provide deposit and/or exchange facilities for ₹2,000 notes by September 30, 2023.
RBI has issued separate guidelines to the banks.
The facility to exchange ₹2,000 notes up to a limit of ₹20,000 at a time will be available at 19 Regional Offices of RBI at “Issue Departments” from May 23, 2023. Banks have been asked to stop issuing ₹2,000. Note with immediate effect.
“The public is encouraged to utilize the time till September 30, 2023 and deposit and/or exchange Rs 2,000 notes,” the RBI statement said.
The ₹2,000 banknote was introduced in November 2016, the banking regulator said, “primarily to meet the economy’s need for currency faster after the withdrawal of legal tender status of all ₹500 and ₹1,000 banknotes in circulation at that time”. to complete”.
“The purpose of introducing Rs 2,000 notes is served once banknotes of other denominations become available in sufficient quantity.”
The printing of ₹2,000 notes was stopped in 2018-19. The RBI said that around 89% of the ₹2,000 notes were issued before March 2017 and are at the end of their estimated life span of 4-5 years.
“The total value of these notes in circulation as on March 31, 2018 has fallen from ₹6.73 lakh crore which was at its peak. [37.3% of notes in circulation] ₹3.62 lakh crore, constituting only 10.8% of notes in circulation as on March 31, 2023,” RBI said.
“It is also observed that this denomination is not commonly used for transactions. In addition, the stock of banknotes of other denominations remains adequate to meet the currency requirement of the public,” the central bank said.
Karthik Srinivasan, Senior Vice-President, Group Head, Financial Sector Ratings, ICRA Ltd. “As seen during demonetisation, we expect bank deposits to improve marginally in the near term. This will ease upward pressure on deposit rates and also soften short term interest rates,” said Can.
What you need to know about demonetisation of ₹2000 note
1. Why are ₹2000 denomination bank notes being withdrawn?
The ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of the Reserve Bank of India Act, 1934 primarily to meet the currency requirement of the economy quickly after the legal tender status of all ₹500 and ₹500 was withdrawn. was done for the purpose of 1000 notes were in circulation at that time. To serve that purpose and with the availability of banknotes of other denominations in sufficient quantity, the printing of ₹2000 banknotes was discontinued in 2018-19. Most of the ₹2000 denomination notes were issued before March 2017 and are at the end of their expected life of 4-5 years. It is also observed that this denomination is not commonly used for transactions. In addition, the stock of bank notes of other denominations continues to be sufficient to meet the currency requirement of the public. In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw ₹ 2000 denomination bank notes from circulation.
2. What is Clean Note Policy?
It is a policy adopted by the RBI to ensure the availability of good quality banknotes to the members of the public.
3. Whether legal tender status of ₹2000 notes continues?
Yes. The legal tender status of the ₹2000 banknote will continue.
4. Can ₹2000 notes be used for normal transactions?
Yes. Members of the public can continue to use ₹2000 notes for their transactions and also receive them as payment. However, they are encouraged to deposit and/or exchange these banknotes on or before September 30, 2023.
5. What should the public do with the ₹ 2000 denomination banknotes in their possession?
Members of the public can approach bank branches to deposit and/or exchange ₹2000 notes in their possession. The facility of deposit in accounts and exchange of ₹2000 banknotes will be available in all banks till September 30, 2023. The facility of exchange will also be available in 19 Regional Offices (ROs) of RBI which have issue departments till September 30, 2023. ,
6. Is there any limit for depositing ₹2000 notes in a bank account?
Deposits can be made into bank accounts without restrictions, subject to compliance with extant Know Your Customer (KYC) norms and other applicable statutory/regulatory requirements.
7. Is there any operational limit on the amount of ₹2000 bank notes that can be exchanged?
Members of the public can exchange ₹2000 notes to the extent of ₹20,000/- at a time.
8. Can ₹2000 notes be exchanged through Business Correspondents (BCs)?
Yes, ₹2000 banknotes can be exchanged through BCs up to a limit of ₹4000/- per day for the account holder.
9. From which date the exchange facility will be available?
To give time to banks to make preliminary arrangements, members of the public are requested to approach bank branches or regional offices of RBI from May 23, 2023 to avail the exchange facility.
10. Is it necessary to be a bank customer to exchange ₹2000 notes at bank branches?
No. A non-account holder can also exchange ₹2000 notes at any bank branch up to a limit of ₹20,000/- at a time.
11. What if one needs cash more than ₹20,000/- for business or other purposes?
Deposits to the accounts can be made without any restrictions. ₹2000 banknotes can be deposited in bank accounts and then cash requirements can be drawn against these deposits. Ahmedabad, Bangalore, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram
12. Are there any charges for exchange facility?
No. Exchange facility will be provided free of cost.
13. Will there be special arrangements for exchange and deposits for senior citizens, persons with disabilities etc.?
Banks have been instructed to make arrangements to minimize inconvenience to senior citizens, persons with disabilities, etc. seeking exchange/deposit of ₹2000 notes.
14. What if one cannot deposit/exchange ₹2000 notes immediately?
To make the entire process smooth and convenient for the public, a period of more than four months has been given for depositing and/or exchanging ₹2000 notes. Members of the public are therefore encouraged to avail of this facility as per their convenience within the allotted time.
15. What if a bank refuses to accept/ exchange ₹ 2000 banknote?
In case of deficiency in service, for redressal of the complaint, the complainant / aggrieved customer may first approach the concerned bank. If the bank does not respond within a period of 30 days of lodging the complaint or if the complainant is not satisfied with the reply/resolution given by the bank, the complainant can lodge a complaint under Reserve Bank – Integrated Ombudsman Scheme (RB). -iOS), 2021 on the Complaint Management System Portal of RBI (cms.rbi.org.in,