This Article is From May 23, 2023

What May Happen To Rs 2,000 Notes After September 30 Exchange Deadline

The Reserve Bank of India announced the withdrawal of the Rs 2,000 notes last week and an exchange window began today.

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India News Edited by

Banks may not accept Rs 2,000 notes after the September 30 deadline and people may have to approach the regional offices of the central bank to exchange them, sources have told BQPrime.

The Reserve Bank of India announced the withdrawal of the Rs 2,000 notes on Friday and an exchange window began today.

Unlike 2016 demonetisation when the older Rs 500 and Rs 1,000 notes were banned by the central bank, Rs 2,000 notes continues to be a valid tender and can also be used for public transactions as of now.

The Rs 2,000 notes will remain valid tender, but banks may not accept those for deposit and exchange, the report cited the source as saying. The legal tender of a note allows its holder to get its full value if they seek to exchange it.

People may not be allowed to transact using those notes after the deadline, it added citing the sources.

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It said a response is awaited from the RBI on the matter. It's not clear if the central bank will extend the deadline.

Meanwhile, chaos and confusion were reported from parts of Delhi over the note exchanging process. While long queues were seen at some places, overall there were not many takers of the exchange offer.

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People complained some banks refused to exchange the notes and were asking them to deposit those, besides demanding their identity proofs.

The central bank on Saturday clarified no slip will be required for exchanging Rs 2,000 notes and that up to a total value of Rs 20,000 can be exchanged at a time. The withdrawal move came under its "Clean Note Policy", it said.

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