RBI says last date to exchange Rs 2,000 notes is Sept. 30. What happens if you fail to deposit by today?

The Reserve Bank of India (RBI) on Friday clarified that the Rs 2,000 denomination banknote will cease to have its value after Saturday and will be just another piece of paper if one does not get it exchanged in any bank, news agency ANI reported.

The central bank had earlier fixed September 30, 2023, as the last date to exchange the notes in a time-bound manner. The clarification surfaced after some reports claimed that the September 30 deadline to return Rs 2000 notes is likely to get extended till October end. 

Till September 30, the Rs 2,000 currency notes can be exchanged at 19 regional offices of RBI or any nearest bank branches. However, there is a limit of Rs 20,000 in the amount of Rs 2,000 notes that can be exchanged for a lower denomination at a time. 

On May 19 this year, the central bank said it would withdraw the Rs 2000 denomination banknotes from circulation but said it would continue to remain as legal tender. However, RBI had advised banks to stop issuing such banknotes with immediate effect.

The Rs 2000 denomination banknotes were introduced in November 2016, under Section 24(1) of the Reserve Bank of India (RBI) Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the demonetisation exercise, under Rs 500 and Rs 1000 banknotes in circulation were withdrawn at that time.

Earlier last month, the RBI said that about 93 per cent of the Rs 2,000 banknotes have returned to the banking system since the central bank in May decided to withdraw the high-value note from circulation.

According to the data received from the banks, the total value of Rs 2,000 banknotes received back from circulation was Rs 3.32 lakh crore up to August 31, 2023, it said in a statement.

What will happen from October 1?

The RBI has said that Rs 2,000 currency notes will remain legal tender even after September 30. According to the RBI's Frequently Asked Questions (FAQs), after today, the notes can only be exchanged with the RBI. 

The RBI has said that a non-account holder could also exchange the banknotes up to a limit of Rs 20,000 at a time at any bank branch.

However, it is important to note that the usual KYC details (Know Your Customer) and other legal deposit norms will still be applicable.

Individuals have the facility to exchange Rs 2000 notes at 19 Regional Offices (ROs) of the RBI. Besides that, one can also exchange Rs 2000 banknotes at any nearby bank branch. 

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