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The Reserve Bank of India (RBI) announced the withdrawal of the Rs 2,000 currency note last week, on May 19. While the note continues to be legal tender, the bank has said the existing notes can be deposited or exchanged in banks from May 23 to September 30, but set a limit of “Rs 20,000 at a time”.
The RBI had also advised banks to stop issuing Rs 2,000 notes with immediate effect, in its May 19 notification. The bank said this move comes under its ‘Clean Note Policy’, which ensures “availability of good quality banknotes to the members of public”.
According to the RBI, about 89 per cent of the Rs 2,000 denomination notes were issued prior to March 2017 and are at the end of their estimated life span of four-five years. “The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3% of notes in circulation) to Rs 3.62 lakh crore constituting only 10.8% of notes in circulation on March 31, 2023,” it said.
The facility for deposit into accounts and exchange for Rs 2,000 currency notes will be available at all banks, and also at the 19 Regional Offices (ROs) of RBI having Issue Departments.
According to the RBI, deposit of Rs 2,000 notes into bank accounts can be made without restrictions subject to compliance with existing Know Your Customer (KYC) norms and other applicable statutory and/or regulatory requirements.
RBI Regional Offices are located in the following cities: Ahmedabad, Bangalore, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram.
The RBI has set a limit of exchanging Rs 20,000 at a time, which effectively means you can exchange 10 Rs 2,000 notes at a time.
No, it is not necessary to be a customer of a bank to avail the exchange facility. The RBI has said that a non-account holder can also exchange Rs 2,000 notes at any bank branch, subject to the limit of Rs 20,000 at a time.
No, the facility will be provided free of cost.
No, the SBI clarified on May 21 that no requisition form and identity proof are required to exchange Rs 2,000 notes.
The RBI has said that Rs 2,000 notes can be exchanged from May 23 to September 30, 2023.
