/ RBI Consultancy

RBI issue FAQ on withdrawal of Rs. 2000/- Denomination Notes

2,000 denomination will continue to be legal tender

RBI issue FAQ on withdrawal of INR 2000/- Denomination Banknotes

Main points to understand about the banknotes withdrawal in the Rs.2000 denomination from circulation:

  • Legal Tender
  • Banks not to issue INR 2000/- notes
  • Time limit
  • Operational limit
  • Use of INR 2000/- note for transactions
  • Business correspondents (BC) can also provide an exchange facility
  • Exchange facility is free
  • Effective date for exchange facility
  • Exchange facility can be availed by non-customers (non-account holders)
  • Where to deposit?

In Accordance with the RBI’s “Clean Note Policy,” it has been decided to withdraw the Rs.2000 denomination banknotes from circulation; however, banknotes in the Rs.2000 denomination will continue to be legal tender. With effect from 23th May, 2023, People can exchange INR 2000/- banknotes of other denominations up to INR 20,000/- at a time, Nationalized or Pvt Bank have been instructed to offer facilities for depositing or exchanging Rs. 2000 banknotes until Sept 30, 2023, But these banknotes will still be considered legal tender

Throughout the RBI notification, nowhere is written upto 30th Sept 2023 2000 note have to deposited in bank Account, So which reference is using by the expert which they saying upto 30th Sept 2023 RS 2000 note shall be deposited?

  • It is to be noted that INR 2000/- banknote will continue to maintain its legal tender status, as per RBI. People can continue to use INR 2000 Notes for their transactions and also receive them in payment.  But people are encouraged to exchange or deposit above Notes on or before Sept 30, 2023.
  • People may approach commercial bank branches for exchange or deposit of INR 2000/- banknotes held by them.
  • Members of the public are encouraged to exchange or deposit above notes on or before Sept 30, 2023.
  • bank accounts Deposit can be made without limit or restrictions but it is subject to regulatory compliance with extant KYC norms & other applicable regulatory/ statutory needs.
  • People can exchange INR 2000 banknotes up to a limit of INR 20,000/- at a time.
  • change or exchange of INR 2000/- notes can be made via Business Correspondents but up to a cap of INR 4000/- per day for an bank Account holder. The change or exchange service will be give free of cost.

FQA ON RBI notification on withdrawal of INR 2000/- Denomination Banknotes

FQA ON RS 2000 NOTE BEING REMOVED FROM CIRCULATION

INR 2000/- denomination banknote was introduced in Nov 2016 with the main goal of meeting the economy’s currency needs quickly following the withdrawal of the legal tender status of all Rs 500 and INR 1000 banknotes in circulation at the time, according to the central bank.

“Approximately 89% of the Rs 2,000 denomination banknotes were issued before March 2017 and have reached the end of their estimated life-span of 4-5 years. The total value of these banknotes in circulation has decreased from Rs 6.73 lakh crore on March 31, 2018 (37.3% of notes in circulation) to Rs 3.62 lakh crore on March 31, 2023 (only 10.8% of notes in circulation). This currency is likewise not widely utilised for transactions, based on observations. Furthermore, the stock of banknotes in other denominations remains adequate to meet the public’s cash needs,” the RBI stated in a statement.

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