RBI Extends Deadline for Exchange and Deposit of Rs 2,000 Notes: Here’s What You Need to Know

The Reserve Bank of India (RBI) has extended the deadline for the public to exchange or deposit Rs 2,000 notes at bank branches until October 7, 2023. The RBI confirmed that the Rs 2,000 denomination banknotes will continue to remain legal tender.

Even after October 7, individuals can exchange these notes at the 19 RBI Issue Offices, with a transaction limit of Rs 20,000 per exchange. Additionally, both individuals and entities are allowed to tender Rs 2,000 banknotes at the 19 RBI Issue Offices to have the amount credited to their bank accounts, without a specified limit for such transactions, as per the RBI’s guidelines.

Banks had previously been instructed to provide deposit and exchange services for Rs 2,000 banknotes until September 30, 2023.

The RBI had announced the discontinuation of Rs 2,000 currency notes in circulation on May 19, citing their clean-note policy, and directed banks to cease the issuance of these notes immediately.

In light of the extended deadline, the RBI has issued detailed clarifications regarding the exchange and deposit of Rs 2,000 banknotes.

Here are the key clarifications provided by the RBI:

Provision for Deposit/Exchange After September 30, 2023: The current facility for deposit/exchange of Rs 2,000 banknotes at bank branches has been extended by the RBI until October 7, 2023.

What Happens After October 7, 2023: Individuals/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. They can also tender Rs 2,000 banknotes at the 19 RBI Issue Offices for credit to their bank accounts in India for any amount. Such transactions will be subject to relevant RBI/Government regulations, submission of valid identity documents, and due diligence as determined by the RBI.

Depositing/Exchanging Without Visiting RBI in Person: Individuals/entities within the country can send Rs 2,000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices, following the procedure laid down by the Department of Posts, for credit to their bank accounts in India. This credit will also be subject to relevant RBI/Government regulations, submission of valid identity documents, and due diligence as deemed fit by the RBI.

Last Date for Exchange at RBI: The facility for deposit/exchange of Rs 2,000 banknotes at the 19 RBI Issue Offices will be available until further advice from the RBI.

These clarifications from the RBI aim to provide clear guidance to the public regarding the exchange and deposit of Rs 2,000 banknotes in the wake of the extended deadline.