The process to exchange or deposit Rs 2,000 banknotes will begin on Tuesday. People can exchange these notes up to a limit of Rs 20,000 at a time. These notes can be deposited into bank accounts and exchanged into banknotes of other denominations at any bank branch.
This limit has been set to minimize inconvenience to the public, ensure smooth operations, and avoid disruption to the regular functioning of bank branches.
The Reserve Bank of India (RBI) said in its release that individuals can deposit and/or exchange these Rs 2000 banknotes in any commercial bank branch on or before September 30, 2023. No requisition slip or identity proof will be required to exchange these banknotes, the RBI said. The exchange facility will also be available at the 19 Regional Offices (ROs) of RBI having Issue Departments.
Last week, the RBI decided to withdraw Rs 2,000 denomination notes from circulation. In regard to this, the RBI advised banks to stop issuing Rs 2,000 denomination banknotes with immediate effect.
However, the central bank clarified that while the notes will continue to remain legal tender, they must be exchanged through banks by September 30.
The RBI also said that “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 up to a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.”
It may be mentioned that the Rs 2,000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time.