What options are available after deadline to exchange Rs 2,000 notes is over? Know here

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• Oct 9, 2023 | Guriya Khatun

According to the RBI, Rs 2,000 notes can still be exchanged by people or entities at any of the 19 RBI Issue Offices for a maximum of Rs 20,000 at a time. 

Digital Desk: Saturday, October 7, was the last day for the public to use exchange services or deposit high-value Rs 2,000 banknotes at banks. Approximately Rs 12,000 crore (or 3.37 percent) of the currency notes were still in circulation as of the deadline, according to Reserve Bank of India (RBI) Governor Shaktikanta Das. In essence, this meant that the value of all Rs 2,000 bills was once again in the banking system at above 96%.

After the deadline expired, the RBI still hadn't provided its last update.

What will happen to people who have not yet exchanged or deposited their Rs 2,000 notes at banks?

According to the RBI, Rs 2,000 notes can still be exchanged by people or entities at any of the 19 RBI Issue Offices for a maximum of Rs 20,000 at a time. Individuals or entities can also tender Rs 2,000 banknotes for credit to their Indian bank accounts for any amount. Alternatively, individuals or entities within the country can send Rs 2,000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices, for credit to their Indian bank accounts.

Following are the  19 RBI Issue Offices -

1. Ahmedabad

2. Bangalore

3. Belapur

4. Bhopal

5. Bhubaneswar

6. Chandigarh

7. Chennai

8. Guwahati

9. Hyderabad

10. Jaipur

11. Jammu

12. Kanpur

13. Kolkata

14. Lucknow

15. Mumbai

16. Nagpur

17. New Delhi

18. Patna

19. Thiruvananthapuram

Additionally, the RBI has repeatedly stated that Rs. 2,000 notes will remain legal tender. At the close of business on May 19, 2023—the date on which the RBI decided to abolish the banknote—there were a total of 3.56 lakh crore rupees worth of Rs 2,000 notes in circulation.

In order to complete the exchange and deposit exercise on time and to give the public enough time, September 30 was initially chosen as the deadline. To avoid any last-minute rush, people were urged to deposit or exchange their Rs. 2000 banknotes during the month of September.

The RBI decided to extend the deposit and exchange arrangement until October 7, 2023 on September 30 based on a review. Banks would no longer accept Rs. 2000 banknotes in exchange for other denominations of banknotes or credit to accounts as of October 8, 2023, the RBI had stated.

The Rs 2,000 denomination banknotes were initially taken out of circulation on May 19 by the RBI, who also declared that they would still be considered legal money. Nevertheless, the RBI had instructed banks to cease issuance of such banknotes right away.

The introduction of the Rs 2000 denomination banknote in November 2016 served largely to quickly address the economy's need for money following the loss of the legal tender status of all Rs 500 and Rs 1000 banknotes in use at the time.

After sufficient supplies of notes in other denominations became available, the goal of launching Rs 2000 banknotes was achieved. The printing of Rs 2000 banknotes was thus stopped in 2018–19.