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“RBI Extends Deadline for Rs 2,000 Note Exchange: New Deadline October 7, 2023”

The Entrepreneur Bytes Team September 30, 2023 56

The Reserve Bank of India (RBI) has extended the deadline for the exchange or deposit of Rs 2,000 notes at bank branches until October 7, 2023. This move comes as part of the RBI’s ‘Clean Note Policy.’ After October 7, customers can continue to exchange these notes at RBI Issue Offices up to a limit of Rs 20,000 at a time.

RBI Extends Deadline to Return Rs 2,000 Notes at Bank Branches Till October 7

In a significant development, the Reserve Bank of India (RBI) has announced an extension of the deadline for the public to exchange or deposit Rs 2,000 denomination banknotes at bank branches. The new deadline, which was previously set to expire on September 30, 2023, has now been extended until October 7, 2023, according to a press release issued by the central bank.

The RBI stated, “As the period specified for the withdrawal process has come to an end, and based on a review, it has been decided to extend the current arrangement for deposit/exchange of Rs 2,000 banknotes until October 07, 2023.” This extension aims to facilitate those remaining bank customers who need to deposit or exchange the now-defunct Rs 2,000 notes.

Even after the October 7 deadline, individuals and entities will have the option to exchange these notes at the 19 RBI Issue Offices, albeit with certain limitations. The RBI has imposed a maximum limit of Rs 20,000 for each exchange transaction at these offices.

Furthermore, customers within the country can send their Rs 2,000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices, for credit to their bank accounts in India. However, this process will be subject to the relevant RBI and government regulations, requiring the submission of valid identity documents and adherence to due diligence as deemed appropriate by the RBI.

The RBI emphasized that the facility for deposit or exchange of Rs 2,000 banknotes at the 19 RBI Issue Offices will remain available until further advice is issued.

In addition to individuals and entities, the RBI has extended the privilege to courts, law enforcement agencies, government departments, or any other public authority involved in investigative proceedings or enforcement. They can deposit or exchange Rs 2,000 banknotes at any of the 19 RBI Issue Offices without any set limit.

The central bank has urged members of the public to expedite the deposit or exchange of their Rs 2,000 banknotes, underscoring the importance of compliance with this extended deadline.

This move follows the RBI’s earlier announcement on May 19, 2023, regarding the withdrawal of Rs 2,000 currency bills from circulation as part of its ‘Clean Note Policy.’ Banks were advised to cease the issuance of these notes immediately.

According to the latest data released by the RBI, approximately 96 percent of the Rs 2,000 banknotes in circulation as of May 19, 2023, have since been returned. Out of the total value of Rs 3.56 lakh crore of Rs 2,000 banknotes in circulation on that date, Rs 3.42 lakh crore has been successfully collected, leaving only Rs 0.14 lakh crore in circulation as of September 29, 2023.

In conclusion, the extension of the deadline for the exchange or deposit of Rs 2,000 notes by the RBI reflects its commitment to facilitating a smooth transition while adhering to its Clean Note Policy. Customers and entities are encouraged to take advantage of this opportunity and ensure compliance with the new deadline set for October 7, 2023.

Sources By Agencies