RBI Extends Deadline for Rs 2,000 Note Exchange to October 7
The Reserve Bank of India has extended the deadline for exchanging Rs 2,000 notes to October 7, 2023, after 96% of these notes were returned.
NEW DELHI: In a recent announcement, the Reserve Bank of India (RBI) has extended the deadline for the exchange of Rs 2,000 denomination banknotes to October 7, 2023. Initially, the deadline had been set for today, but this extension provides relief to those who still possess these notes. What's noteworthy is that even after the new deadline, the Rs 2,000 notes will continue to be valid as legal tender.
The history of these high-denomination notes is notable. The RBI withdrew them from circulation earlier this year on May 19. However, they were not demonetized; instead, it was announced that they would remain legal tender. At the time, there was a limit of Rs 20,000 for exchanging or depositing these notes at once, and the RBI had permitted the exchange or deposit of existing Rs 2,000 notes in banks until September 30.
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 ₹2,000 banknotes until October 07, 2023. With effect from October 08, 2023." This decision provides further flexibility to individuals who still possess these notes.
According to data provided by banks, as of May 19, 2023, there were ₹3.56 lakh crore worth of ₹2,000 banknotes in circulation. Remarkably, by September 29, 2023, ₹3.42 lakh crore of these notes had been returned to banks, leaving only ₹0.14 lakh crore in circulation. This indicates that a substantial 96% of the ₹2,000 banknotes in circulation as of May 19, 2023, have been returned to the banking system.
The introduction of the Rs 2,000 denomination banknotes dates back to November 16, when they were introduced primarily to address the economy's currency requirements in a cost-effective manner, following the demonetization of the Rs 500 and Rs 1,000 banknotes. This extension of the exchange deadline ensures that individuals still holding these notes have ample time to make the necessary exchanges and transactions with confidence in their validity.