Breaking News: RBI Withdraws Rs 2,000 Currency Notes, Exchange Facility Announced
Mumbai, May 19, 2023 - In a significant move, the Reserve Bank of India (RBI) has decided to withdraw the Rs 2,000 currency notes from circulation. This announcement comes as the central bank aims to streamline the currency supply and promote the use of other denominations.
The introduction of the Rs 2,000 banknote in November 2016 was a response to the withdrawal of the legal tender status of Rs 500 and Rs 1,000 notes at that time. However, with the successful achievement of its original objective and the availability of ample banknotes in various denominations, the RBI ceased printing the Rs 2,000 notes in 2018-19.
Notably, the majority of the Rs 2,000 banknotes currently in circulation were issued prior to March 2017 and are reaching the end of their estimated life-span of 4-5 years. Furthermore, this particular denomination is observed to be less frequently used for everyday transactions.
Hence, in line with its "Clean Note Policy," the RBI has made the decision to withdraw the Rs 2,000 banknotes from circulation to ensure the availability of good quality banknotes to the public. It is important to note that the Rs 2,000 banknotes will continue to retain their legal tender status.
To facilitate a smooth transition, the RBI has outlined the following guidelines for the public:
Deposit and exchange: Individuals holding Rs 2,000 banknotes can deposit them into their bank accounts or exchange them for banknotes of other denominations at any bank branch. The facility for depositing into accounts and exchanging Rs 2,000 notes will be available at all banks until September 30, 2023.
Exchange process: Starting from May 23, 2023, individuals can approach bank branches or the 19 Regional Offices of RBI with Issue Departments for the exchange of Rs 2,000 banknotes.
Limits and restrictions: There are no restrictions on depositing Rs 2,000 banknotes into a bank account, subject to compliance with Know Your Customer (KYC) norms and other applicable regulations. However, when exchanging at a bank, individuals can exchange up to Rs 20,000 worth of Rs 2,000 banknotes at a time. Business Correspondents (BCs) can facilitate exchanges of up to Rs 4,000 per day for account holders.
No extra fees: The exchange facility for Rs 2,000 banknotes will be provided free of cost. Individuals will not have to pay any additional fees for exchanging their current Rs 2,000 notes.
Senior citizens and special arrangements: Banks have been instructed to make special arrangements to minimize inconvenience for senior citizens, persons with disabilities, and other vulnerable groups seeking to exchange or deposit Rs 2,000 banknotes.
The RBI has emphasized that although the Rs 2,000 banknotes can still be used for transactions, individuals are encouraged to deposit or exchange them by September 30, 2023, to ensure a seamless transition. Furthermore, in case of any grievances or issues faced during the exchange process, individuals can lodge complaints with the concerned bank or approach the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS) for resolution.
The RBI's decision to withdraw the Rs 2,000 banknotes aims to streamline the currency supply and maintain the quality of banknotes in circulation, while ensuring a hassle-free process for the public to exchange or deposit their notes.