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What Happens If Bank Refuses To Exchange OR Accept Deposit Of Rs.2000 Denomination Banknote?

What Happens If Bank Refuses To Exchange OR Accept Deposit Of Rs.2000 Denomination Banknote?


Business

oi-Ajeeta Bhatia

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The Reserve Bank of India (RBI) has recently issued a significant announcement pertaining to the withdrawal of ₹2000 denomination notes from circulation. As per the RBI circular, it has been specified that the ₹2000 notes will continue to be recognized as legal tender until September 30, 2023.

The RBI has initiated a phased process to gradually remove these ₹2000 banknotes from circulation, which will be completed by September 30, 2023.

What Happens If Bank Refuses To Exchange OR Accept Deposit Of Rs.2000 Notes?

The introduction of the ₹2000 denomination banknote in November 2016 was authorized under Section 24(1) of the RBI Act, 1934. Its primary purpose was to meet the immediate currency demands of the economy following the withdrawal of legal tender status for all ₹500 and ₹1000 banknotes in circulation at that time. As the objective of fulfilling the urgent currency requirement was achieved and an ample supply of banknotes in various denominations became available, the printing of ₹2000 banknotes was halted in the fiscal year 2018-19.

The majority of ₹2000 denomination notes currently in circulation were issued before March 2017 and have reached the end of their estimated life-span of 4-5 years. Moreover, it has been observed that this particular denomination is not frequently utilized for transactions. Additionally, the supply of banknotes in other denominations remains sufficient to meet the currency needs of the general public.

Considering the aforementioned factors and in alignment with the Reserve Bank of India’s “Clean Note Policy,” a decision has been made to withdraw the ₹2000 denomination banknotes from circulation.

If a bank refuses to exchange or accept a deposit of the Rs 2000 banknote, the affected customer or complainant should first approach the relevant bank for resolution.

If the bank fails to respond within 30 days of receiving the complaint or if the complainant is unsatisfied with the bank’s response or resolution, they have the option to file a complaint under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021. This can be done through the RBI’s Complaint Management System portal (cms.rbi.org.in).

Story first published: Saturday, May 20, 2023, 21:59 [IST]


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