Rs 2,000 Notes Withdrawn From Circulation: Why You Should Not Panic | 10 Points

he Rs 2,000 denomination bank note was introduced in November 2016, primarily to meet the currency requirement of the economy after the withdrawal of all Rs 500 and Rs 1,000 bank notes that were in circulation at that time.

New Delhi: In a surprising move, the Reserve Bank of India on Friday announced the decision to withdraw circulation of Rs 2,000 denomination notes. However, it gave the public time till September 30 to either deposit such notes in accounts or exchange them at banks. Unlike the November 2016 demonetisation when Rs 500 and Rs 1,000 notes were invalidated overnight, the Rs 2,000 notes will continue to be legal tender till September 30, RBI said in a statement.  In a release, the central bank said that this is being done under its “Clean Note Policy”.

RBI withdraws Rs 2,000 notes from circulation: Things you must know

1. Last date to deposit, and exchange Rs 2000 notes: If you are holding Rs 2000 denomination currency notes, you can either deposit them in your bank account or exchange them with other notes in a bank by September 30, 2023.
2. There is also a limit of Rs 20,000 for the exchange of Rs 2000 notes at a time in a bank, according to RBI. However, there is no limit on the amount you can deposit in your bank account.
3. The exchange of Rs 2000 notes will start from May 23, 2023.
4. Rs 2000 currency notes will be withdrawn from circulation but they will continue to remain legal tender, according to RBI.
5. Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions
6. You can also exchange Rs 2000 banknotes through Banking Correspondents up to a limit of Rs 4000 per day for an account holder.
7. Even a non-account holder also can exchange Rs 2,000 banknotes up to a limit of Rs 20,000 at a time at any bank branch.
8. In terms of limitations, deposit into bank accounts can be made without restrictions subject to compliance with extant Know Your Customer (KYC) norms and other applicable statutory / regulatory requirements, the central bank said.
9. In case a bank refuses to exchange Rs 2000 notes, the customers can first reach out to the bank concerned and raise a complaint.
10. If the banks still fails to respond after a month or if the aggrieved customer is unsatisfied with the solution, a fresh complaint can be filed under the Reserve Bank – Integrated Ombudsman Scheme, 2021 in the complaint management system portal of RBI (cms.rbi.org.in).

As per the RBI, about 89 per cent of the Rs 2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life span of 4-5 years. The total value of such banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to Rs 3.62 lakh crore constituting only 10.8 per cent of notes in circulation as on March 31, 2023.