RBI Extends Deadline for Rs 2000 Note Exchange to October 7

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On September 30, the Reserve Bank of India (RBI) announced an extension of the deadline for the public to exchange or submit Rs 2000 notes until October 7, 2023. This decision follows a review conducted by the RBI as the initial withdrawal period had reached its conclusion.

In an official press release, the RBI stated, "In light of the expiration of the originally specified withdrawal period and a comprehensive assessment, it has been determined that the existing arrangement for the deposit/exchange of Rs 2000 banknotes will remain in effect until October 7, 2023." The RBI further emphasized that the option to deposit or exchange Rs 2000 banknotes at bank branches has been prolonged until the aforementioned date and reiterated that these banknotes will retain their legal tender status.

The initial deadline for returning Rs 2000 notes was set to expire on September 30. Post the extended deadline, individuals and entities will still have the opportunity to exchange these notes at the 19 RBI Issue offices, with a limit of Rs 20,000 per transaction. Additionally, they can credit Rs 2000 banknotes to their Indian bank accounts through the 19 RBI issue offices without any specific amount restrictions. The RBI also noted that customers within the country can send Rs 2000 banknotes via India Post to any of the 19 RBI Issue Offices for crediting to their Indian bank accounts. However, all such transactions are subject to compliance with relevant RBI and government regulations, presentation of valid identification documents, and adherence to due diligence procedures as determined by the RBI.

Notably, the RBI had previously announced the withdrawal of Rs 2,000 currency notes from circulation on May 19 as part of its clean-note policy, directing banks to cease issuance of these bills immediately. In line with this policy, the RBI confirmed in its latest release that approximately 96% of the Rs 2000 banknotes in circulation as of May 19, 2023, have been returned. Out of the total value of Rs 3.56 lakh crore of Rs 2000 banknotes in circulation as of May 19, 2023, Rs 3.42 lakh crore has already been received back by the RBI, leaving only Rs 0.14 lakh crore in circulation as of the close of business on September 29, 2023.