RBI Extends Rs 2,000 Note Exchange Deadline To October 7

In a press release dated September 30, 2023, the Reserve Bank of India has provided clarification regarding the fate of Rs 2,000 notes once the initial deadline of September 30, 2023, expires. The central bank has subsequently extended the deadline for depositing and/or exchanging Rs 2,000 currency notes to October 7, 2023.

Starting from October 8, 2023, the following measures will be implemented, as outlined in the press release:

a) The deposit and exchange of Rs 2,000 banknotes at bank branches will be discontinued.

b) Individuals and entities can continue to exchange Rs 2,000 banknotes at the 19 RBI Issue Offices, with a limit of Rs 20,000 at a time.

c) Individuals and entities can present Rs 2,000 banknotes at the 19 RBI Issue Offices to credit them to their bank accounts in India, without any specific amount limit.

d) Individuals and entities within the country can also send Rs 2,000 banknotes via India Post, addressed to any of the 19 RBI Issue Offices, for the purpose of crediting them to their bank accounts in India.

e) These exchange or credit transactions will be subject to the relevant regulations set forth by the RBI and the Government, requiring the submission of valid identity documents and complying with due diligence procedures as determined by the RBI.

f) Courts, law enforcement agencies, government departments, or any other public authority involved in investigation proceedings or enforcement may, as needed, deposit or exchange Rs 2,000 banknotes at any of the 19 RBI Issue Offices without any specific limit.

In its notification issued on May 19, 2023, the RBI discontinued the circulation of Rs 2,000 notes and requested the general public to exchange or deposit these notes at banks or the 19 regional offices of the RBI. The deadline for this exchange or deposit was set for September 30, 2023. It's worth noting that the initial notification did not provide clarity on the fate of Rs 2,000 banknotes after September 30, 2023. Importantly, the RBI did not revoke the legal tender status of Rs 2,000 banknotes. In its subsequent press release, the RBI explicitly stated that Rs 2,000 banknotes would continue to hold their legal tender status.

The option to deposit or exchange Rs 2,000 banknotes at the 19 RBI Issue Offices will remain accessible until further notice. The public is strongly advised to proceed with depositing or exchanging their Rs 2,000 banknotes without any additional delay.

What did the press release say?

The press release stated that the Reserve Bank of India (RBI) had announced the withdrawal of Rs 2,000 banknotes from circulation through Press Release 2023-2024/257, which was issued on May 19, 2023. To ensure a timely completion of this process and to allow ample time for the general public, banks were instructed to offer deposit and/or exchange services for Rs 2,000 banknotes until September 30, 2023. Additionally, the option for exchange was extended to the 19 Regional Offices (ROs) of the RBI that possessed Issue Departments, known as RBI Issue Offices.

The RBI has been keeping members of the public informed about the status of the withdrawal exercise through monthly Press Releases. According to the data received from banks, of the total value of Rs 3.56 lakh crore of Rs 2000 banknotes in circulation as on May 19, 2023, Rs 3.42 lakh crore has been received back leaving only Rs 0.14 lakh crore in circulation as at the close of business on September 29, 2023. Thus, 96% of the Rs 2000 banknotes in circulation as on May 19, 2023 has since been returned.