The Reserve Bank of India (RBI) has concluded its deadline for the exchange or deposit of ₹2,000 currency notes, which ended on October 7. Notably, the central bank has not made any announcements regarding an extension of this deadline.
Original Four-Month Window
Initially, the RBI had granted a four-month window for individuals to deposit or exchange their ₹2,000 notes at their nearest banks. This decision followed the withdrawal of these notes from circulation on May 19. The ₹2,000 notes were first introduced as part of the Narendra Modi government’s demonetization initiative and were in circulation for six years.
Implications After Deadline
As of October 8, 2023, banks will cease accepting ₹2,000 banknotes for crediting accounts or exchanging them for other denominations. However, ₹2,000 notes can still be presented at the 19 Regional Offices of the RBI with Issue Departments (RBI Issue Offices) for crediting to bank accounts in India or for exchange, as outlined in the Press Release. All instructions issued under para 3A of the circular DCM(Plg)No.S-236/10.27.00/2023-24 dated May 19, 2023, will remain in effect.
Currency Chest Deposits
Furthermore, banks must ensure that ₹2,000 banknotes collected by their branches until October 7, 2023, are deposited at currency chests by October 13, 2023, as specified by the RBI.
Continued Legal Tender Status
Despite the deadline’s conclusion, ₹2,000 banknotes will retain their legal tender status. The RBI encourages banks to display a copy of the Press Release in their banking halls, ATM kiosks, etc., to inform customers and the public.
Print Cessation and Total Value
The decision to stop printing ₹2,000 banknotes was made during the fiscal year 2018-19. As of May 19, 2023, the total value of ₹2,000 banknotes in circulation was ₹3.56 lakh crore, marking the date on which the RBI opted to withdraw them from circulation.
