Rs. 2000 Notes, No Need To Press The Panic Button
Both customer and non-customer of can exchange them, subject to compliance of KYC, explains Sanjay Das, Senior Bank Trade Union Leader
People shouldn’t be panic regarding possession of currency notes of Rs. 2,000, says Sanjay Das, senior bank Trade Union Leader, as there is enough time for exchange. Other than banks and 19 Regional centers of RBI, there are special counters for senior citizens.
- Why are Rs 2,000 denomination currency notes being withdrawn?
The Rs 2,000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934 primarily with the objective to meet the currency requirement of the economy in an expeditious manner after withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time. With the fulfilment of that objective and the availability of banknotes in other denominations in adequate quantities, the printing of Rs 2,000 banknotes was stopped in 2018-19.
A majority of the Rs 2,000 denomination notes were issued prior to March 2017 and are at the end of their estimated life span of 4-5 years. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public. In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the Rs 2,000 denomination banknotes from circulation.
- What is the Clean Note Policy?
It is a policy adopted by RBI to ensure the availability of good quality banknotes to the members of the public.
- Does the legal tender status of Rs 2,000 banknotes remain?
Yes. The Rs 2,000 banknote will continue to maintain its legal tender status.
- Can Rs 2,000 banknotes be used for normal transactions?
Yes. Members of the public can continue to use Rs 2000 notes for their transactions and also receive them in payment. However, they are encouraged to deposit and/or exchange these banknotes on or before September 30, 2023.
- What should the public do with the Rs 2,000 denomination banknotes held by them?
Members of the public may approach bank branches for deposit and/or exchange of Rs 2,000 banknotes held by them. The facility for deposit into accounts and exchange for Rs 2,000 banknotes will be available at all banks until September 30, 2023. The facility for exchange will be available also at the 19 Regional Offices (ROs) of RBI having Issue Departments1 until September 30, 2023.
- Is there a limit on deposit of Rs 2,000 banknotes into a bank account?
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.
- Is there an operational limit on the amount of Rs 2,000 banknotes that can be exchanged?
Members of the public can exchange Rs 2,000 banknotes up to a limit of Rs 20,000 at a time. An exchange of Rs 2,000 banknotes can be made through BCs up to a limit of Rs 4,000 per day for an account holder. Banks have been instructed to make arrangements to reduce inconvenience to senior citizens, persons with disabilities, etc., seeking to exchange/deposit Rs 2,000 banknotes.