RBI Extends Deadline to Exchange Rs 2000 Notes

The Reserve Bank of India (RBI) has extended the deadline to exchange ₹2,000 denomination notes. Rs 2000 banknotes will cease to have its value after 7 October and will be just another piece of paper if one does not get it exchanged in any bank.

This notification came today after reports suggested that 30 September deadline to return ₹2000 notes is likely to get extended till October end.

On 19 May, RBI removed the ₹2000 notes from circulation and gave nearly four months to deposit or exchange the notes. The last date given by RBI to exchange or deposit these notes have been extended till October 7. People can go to their nearest bank branch and get the ₹2000 notes exchanged or deposit. They can exchange or deposit their ₹2,000 notes in bank branches and regional branches of RBI. A non-account holder can also exchange ₹2000 banknotes up to a limit of ₹20,000 at a time at any bank branch.

What happens after the October 7 deadline?

After 7 October, though the notes will continue to remain legal tender, however, they will not be accepted for transaction purposes and can only be exchanged with the RBI.

Earlier on 2 September, RBI had said that as much as 93 percent of ₹2000 banknotes that were in circulation on May 19 have been returned to banks.

Data collected from major banks indicated that out of the total banknotes in ₹2000 denomination received back from circulation, about 87 percent is in the form of deposits while about 13 per cent has been exchanged into other denomination banknotes.

On May 19, the RBI decided to withdraw the ₹2000 denomination banknotes from circulation but said it would continue to remain as legal tender. However, RBI had advised banks to stop issuing such banknotes with immediate effect.

The ₹2000 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 ₹500 and ₹1000 banknotes in circulation at that time.

The objective of introducing ₹2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of ₹2000 banknotes was stopped in 2018-19.