As the clock ticks down on the final day for the public to return or exchange Rs 2000 banknotes, the Reserve Bank of India (RBI) has reiterated the options available to individuals and entities who still possess these high-denomination notes. The deadline to return or exchange Rs 2000 banknotes officially ends today, October 7, 2023.
Initially, September 30 was set as the last date for completing the exchange and deposit process to provide ample time for the public. However, based on a review, RBI decided to extend the arrangement until October 7, 2023. Starting from October 8, 2023, banks will no longer accept Rs 2000 banknotes for credit to accounts or exchange to other denomination banknotes, according to the RBI.
As of the announcement date on May 19, 2023, the total value of Rs 2000 banknotes in circulation was Rs 3.56 lakh crore. RBI Governor Shaktikanta Das revealed during a monetary policy review meeting on October 6, 2023, that approximately Rs 12,000 crore (or 3.37 per cent) of these notes remain in circulation.
Governor Das stated, “We have announced the withdrawal of Rs 2,000 notes. So far, we have got back about 3.43 lakh crore, and only about 12,000 crore or so are left. Of course, 87 per cent of it has come as bank deposits, and the rest is exchange of cash with other denominations over the counter.”
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For those still holding Rs 2000 notes, here are the options available after the October 7 deadline:
1. Exchange at RBI Issue Offices: Individuals or entities can continue to exchange their Rs 2000 banknotes at any of the 19 RBI Issue Offices. There is a limit of Rs 20,000 at a time for such exchanges.
2. Deposit in Bank Accounts: Rs 2000 banknotes can be tendered for credit to bank accounts in India for any amount. This option allows individuals to deposit their high-denomination notes into their bank accounts.
3. India Post: People residing within the country also have the option to send their Rs 2000 banknotes through India Post. These notes should be addressed to any of the 19 RBI Issue Offices for credit to their bank accounts in India.
The decision to withdraw the Rs 2000 notes was aimed at phasing out high-denomination currency and promoting digital transactions. With the majority of these notes already returned to the system, this move signifies a significant step in the Indian government’s efforts to modernize the country’s financial infrastructure.
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As the deadline closes in, the RBI encourages individuals and entities to take advantage of the available options to exchange or deposit their Rs 2000 banknotes to avoid any last-minute inconveniences. After October 7, 2023, banks will no longer accept these notes, so it is essential for the public to act promptly if they still possess them.