The Reserve Bank of India (RBI) on May 19 decided to withdraw the ₹2,000 note from circulation.
However, ₹2,000 notes will continue to be legal tender.
The RBI added that members of the public can deposit ₹2,000 notes into their bank accounts and/or exchange them for notes of other denominations at any bank branch. Depositing into bank accounts can be made in the usual way, i.e. without restrictions and subject to applicable instructions and other applicable legal provisions.
The exchange facility for notes of ₹2,000 up to ₹20,000 at a time would be available from May 23, 2023 and will run until September 30, the central bank said.
The RBI has advised banks to stop issuing ₹2,000 notes with immediate effect.
Frequently Asked Questions
1. Why are banknotes with a face value of ₹2000 withdrawn?
The banknote with a face value of ₹2000 was introduced in November 2016 under Section 24(1) of the RBI Act 1934, primarily for the purpose of quickly meeting the currency needs of the economy after withdrawal from legal tender of all ₹500 and ₹. 1000 banknotes in circulation at that time. With the achievement of this goal and the availability of banknotes in other denominations in adequate quantities, the printing of ₹2000 banknotes was stopped in 2018-19. The majority of ₹2000 denominations were issued before March 2017 and are at the end of their estimated 4-5 year lifespan. It has also been observed that this denomination is not commonly used for transactions. In addition, the stock of banknotes in other denominations continues to be sufficient to meet the currency needs of the public. In view of the above, and in line with the Reserve Bank of India’s “Clean Note Policy”, it has been decided to withdraw banknotes with a face value of ₹2000 from circulation.
2. What is the clean note policy?
It is a policy adopted by RBI to ensure the availability of good quality banknotes to members of the public.
3. Are ₹2,000 banknotes retained as legal tender?
Yes. The ₹2,000 note will continue to retain legal tender.
4. Can ₹2,000 notes be used for normal transactions?
Yes. Members of the public can continue to use the ₹2,000 notes for their transactions and also receive them as payment. However, they are encouraged to deposit and/or redeem these notes no later than September 30, 2023.
5. What should the public do with the denominations of ₹2000 they hold?
Members of the public can approach bank branches to deposit and/or exchange ₹2,000 banknotes they hold. The account deposit and note exchange facility of ₹2000 will be available at all banks until September 30, 2023. The exchange facility will also be available at the 19 RBI Regional Offices (ROs) having departments issue until September 30, 2023. .
6. Is there a banknote deposit limit of ₹2,000 in a bank account?
Deposit to bank accounts can be made without restriction subject to compliance with existing Know Your Customer (KYC) standards and other applicable legal/regulatory requirements.
7. Is there an operational limit to the number of ₹2,000 notes that can be redeemed?
Members of the public can redeem tickets from ₹2,000 up to a limit of ₹20,000/- at a time.
8. Can ₹2000 banknotes be exchanged through Trade Correspondents (BC)?
Yes, exchange of ₹2,000 notes can be done through BC up to a limit of ₹4,000/- per day for an account holder.
9. From what date will the exchange facility be available?
To give banks time to make preparatory arrangements, members of the public are urged to approach bank branches or RBI ROs from 23 May 2023 to avail of the foreign exchange facility.
10. Is it necessary to be a customer of the bank to exchange ₹2,000 notes at its branches?
No. A non-account holder can also exchange ₹2,000 notes up to a limit of ₹20,000/- at a time at any bank branch.
11. What if someone needs more than ₹20,000/- in cash for work or other reasons?
Deposit to accounts can be made without restriction. ₹2000 banknotes can be deposited in bank accounts and cash requirements can be drawn afterwards, 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 fees for the exchange facility?
No. The foreign exchange facility must be provided free of charge.
13. Will there be any special arrangements for the elderly, disabled, etc.? for exchange and deposit?
Banks have been instructed to make arrangements to reduce inconvenience for elderly, disabled, etc. seeking to exchange/deposit ₹2,000 notes.
14. What will happen if one cannot immediately deposit/exchange a ₹2,000 note?
To make the whole process smooth and convenient for the public, a time limit of more than four months has been given for depositing and/or redeeming ₹2,000 notes. Members of the public are therefore encouraged to avail themselves of this facility at their convenience within the given time frame.
15. What will happen if a bank refuses to exchange/accept the deposit of a ₹2,000 note?
To obtain redress for a grievance in the event of a service failure, the complainant/aggrieved customer may first approach the bank concerned. If the bank does not respond within 30 days of the filing of the complaint or if the complainant is not satisfied with the response/resolution given by the bank, the complainant may file the complaint under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 on the RBI Complaint Management System Portal (cms.rbi.org.in).