(Reserve Bank of India) RBI to withdraw ₹2000 notes from circulation by 30 SEP, 2023. However, the Rs 2,000 notes will continue to be legal tender.
The Reserve Bank of India (RBI) has decided to withdraw Rs 2,000 denomination banknotes from circulation. However, the notes will continue as legal tender, The Central Bank said in a circular on Friday.
The RBI has advised banks to stop issuing Rs 2,000 denomination banknotes with immediate effect. In a circular, the central bank said that all Rs 2,000 currency notes must be exchanged before September 30, 2023.
“To complete the exercise in a time-bound manner and to provide adequate time for the members of the public, all banks shall provide deposit and/or exchange facilities for Rs 2000 banknotes until September 30, 2023,” the RBI circular read.
What are the 5 points from the RBI release?
- The RBI said that ₹ 2,000 note will continue to remain a legal tender, which means they will be accepted if offered in payment of a debt. The bank also announced time limit to take the note off circulation. It asked people to exchange them at banks by September 30.
- The window to exchange ₹ 2,000 notes will open on May 23, since the RBI wants to give banks time to make preparatory arrangements. The facility to exchange ₹ 2,000 notes will also be available at 19 regional offices of RBI.
- There is a cap on the amount of ₹ 2,000 bank notes that can be exchanged. As per the RBI release, people can exchange up to a limit of ₹ 20,000 at a time. They can also approach a Business Correspondent (BC), an extended arm of a bank branch who provides financial and banking services in unbanked and underbanked areas. The limit in this case is ₹ 4,000 per day.
- It is also not necessary for a person to be a customer of the bank to exchange soon-to-be-discontinued currency. A non-account holder can exchange ₹ 2,000 banknotes up to a limit of ₹ 20,000 at a time at any bank branch.
- The RBI clarified that people don’t have to pay any fee to avail the exchange facility. Further, banks have been instructed to make arrangements to reduce inconvenience for the senior citizens and persons with disabilities who wish to exchange or deposit ₹ 2,000 banknotes.
Not ₹2000 Dhamaka, but billion dollar ‘Dhoka’ to Indians, says Bengal CM Mamata Banerjee
Reacting to RBI’s direction of withdrawing Rs 2000 currency notes, West Bengal Chief Minister Mamata Banerjee said, it was not Rs 2000 dhamaka, but a billion dollar “dhoka” to a billion Indians.
Taking to Twitter, the Bengal CM said, “So it wasn’t ₹2000 Dhamaka but a billion dollar Dhoka to a billion Indians. Wake up, my dear brothers and sisters. The suffering we have endured due to Demonetisation can’t be forgotten and those who inflicted that suffering shouldn’t be forgiven.”
The central bank has also asked banks to stop issuing Rs 2,000 notes with immediate effect. This change has been brought about in pursuance with RBI’s “Clean Note Policy”, RBI said in its communique
Members of the public will be allowed to deposit Rs 2,000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch.
However, RBI added that exchange of Rs 2000 banknotes into banknotes of other denominations can be made up to a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.
Frequently Asked Questions (FAQs)
What does “Out of Circulation” Means?
RBI won’t print ₹ 2000 currency note anymore. ₹ 2,000 currency notes if deposited in banks won’t be available for withdrawal.
What do you have to do?
Before September 30, 2023. You have to either deposit or exchange ₹ 2,000 currency notes in banks. Exchange limit is ₹ 20,000 per instance.
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