The Reserve Bank of India has advised banks to stop issuing ₹2000 currency notes with immediate effect. They will remain legal tender till September, the RBI said.
The total value of the ₹2,000 banknotes in circulation has declined from ₹6.73 lakh crore at its peak on March 31, 2018 to ₹3.62 lakh crore constituting only 10.8% of notes in circulation in 2023.
1. Why are ₹2000 banknotes being withdrawn?
First issued in 2016 under Section 24(1) of RBI Act, 1934, the ₹2000 currency was introduced to cater to the economy’s requirements after the demonetisation of ₹500 and ₹1000 banknotes. As banknotes in other denominations became available in adequate quantities, RBI scrapped the printing of ₹2000 notes in 2018-19. Nearly 89 per cent of the ₹2,000 denomination notes issued before March 2017 are said to be at the end of their approximate lifespan of 4-5 years. Also, it has been understood that people do not depend on the ₹2,000 notes for regular transactions.
2. How and where to exchange ₹2,000 notes?
People can exchange or deposit their ₹2,000 notes in their respective bank accounts till September 30. This facility will be available in all 19 regional offices of the RBI and other banks starting from May 23.
3. Is there a limit to the amount of ₹2000 banknotes for exchange?
In order to maintain operational convenience and to reduce disruption of regular activities of bank branches, there is a limit of ₹20,000 on the amount of ₹2,000 notes that can be exchanged for a lower denomination at a time.
4. Will ₹2000 notes be accepted in regular transactions?
₹2,000 notes will continue to be in use for transactions and other payments. However, it is advised to exchange the withdrawn notes by the end of September.
5. What to know when depositing ₹2000 banknotes in a bank account?
Rules as per Know Your Customer (KYC) norms and other statutory requirements will be applicable when depositing the scrapped ₹2,000 notes into your bank accounts.
6. Can we avail the services of business correspondents for exchange?
Business correspondents (BC), or a bank agent who provides services to customers at locations other than a bank branch/ATM, can be utilised for exchange of ₹2000 banknotes up to ₹4000/- per day.
7. Are only bank customers allowed to exchange the notes?
People without an account with the bank may also avail the exchange facility of ₹2000 banknotes up to a limit of ₹20,000 at once at any bank branch.
8. What to do in case more than ₹20,000 cash required?
The ₹2000 banknotes can be deposited into bank accounts without restrictions and cash can be drawn later against these deposits.
9. Fees applicable to avail exchange facility
People can exchange their ₹2,000 notes for a lower denomination at no extra charges.
10. Facilities for senior citizens, persons with disabilities to exchange notes
Banks will be implementing special arrangements to minimise trouble to senior citizens, persons with disabilities, etc., who wish to to exchange or deposit ₹2000 notes.
11. What if one cannot deposit ₹2000 note immediately?
RBI has given four months time period, which they said offers enough window, for the public to conveniently exchange the soon-to-be discontinued notes.
15. What if a bank refuses to exchange ₹2000 notes?
To raise any complains, customers can first reach out the bank concerned. In case the bank fails to respond after a month or if the aggrieved customer is unsatisfied with the solution, the complaint can be filed under the Reserve Bank – Integrated Ombudsman Scheme, 2021 in the complaint management system portal of RBI (cms.rbi.org.in)