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Last chance to return Rs 2000 notes at a bank; RBI says exchange today or see it turn worthless

Reserve Bank of India clarifies regarding the Rs 2,000 denomination banknote's cessation of value after the deadline to exchange it expires on Saturday, September 30, 2023

Last chance to return Rs 2000 notes at a bank; RBI says exchange today or see it turn worthless
First Published Sep 30, 2023, 9:55 AM IST

The Reserve Bank of India (RBI) has clarified that the Rs 2,000 denomination banknote will lose its value after Saturday, becoming worthless unless exchanged at a bank. This clarification comes in response to recent reports suggesting a possible extension of the September 30 deadline for returning Rs 2,000 notes until the end of October.

Initially, the RBI had set September 30, 2023, as the deadline for this exercise to ensure a time-bound process and provide ample opportunity for the public to exchange these notes.

Last month, the RBI reported that approximately 93 per cent of the Rs 2,000 banknotes had already returned to the banking system after the central bank's decision in May to withdraw the high-value note from circulation. While the Rs 2,000 note continued to be considered legal tender, the RBI had instructed banks to cease issuing it immediately.

Rs 2000 notes worth $2.9 billion still out there?

Nonetheless, as per a Bloomberg report, a substantial amount of approximately 240 billion rupees, equivalent to $2.9 billion, in Rs 2,000 denomination notes is still in circulation. Although the majority of the 3.56 trillion rupees worth of these notes have been deposited in banks, the report highlights that as of September 1, around 7 per cent of these notes were still in active circulation.

The Rs 2,000 denomination banknote was introduced in November 2016 to swiftly address the currency requirements of the economy following the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time. Once an adequate supply of banknotes in other denominations became available, the printing of Rs 2,000 banknotes was discontinued in 2018-19.

How to exchange Rs 2000 notes?

For those who still possess Rs 2,000 notes, there is a limited window for exchange or deposit. Banks remain open today due to the fifth Saturday, providing individuals with the opportunity to visit their nearest bank branch for exchanging or depositing Rs 2,000 notes. Even non-account holders can exchange Rs 2000 banknotes, up to a limit of Rs 20,000 at a time, at any bank branch.

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