2000-Rupee Notes Withdrawn: Bringing Clarity

The Reserve Bank of India announced on the 19th of May that it will withdraw the highest denomination Indian currency note of Rs. 2000. It also stated that 2000-rupee notes could only be deposited or exchanged at banks before September 30. In November 2016, the 2000-rupee note was introduced under Section 24(1) of the RBI Act, 1934, following the withdrawal of the legal tender status of Rs 500 and Rs 1000 notes.

In line with the fulfilment of its objectives and the presence of a sufficient supply of banknotes in alternative denominations, the printing of 2000-rupee notes was ceased in the fiscal year 2018-19. The RBI also made a mention that it issued the majority of the 2000-rupee notes before March 2017. As these notes reach the end of their anticipated lifespan of 4-5 years, their usage for transactions has significantly declined. Additionally, there is a sufficient supply of banknotes in various other denominations to fulfil the currency needs of the people. Thus, RBI decided to withdraw the 2000-rupee notes in accordance with the ‘Clean Note Policy’. The Clean Note Policy aims to provide the public with high-quality currency notes and coins that incorporate improved security features. Simultaneously, the policy involves the withdrawal of soiled notes from circulation.

The withdrawal of 2000-rupee notes has created chaos among the masses. Panic-stricken people are rushing to the banks, medical stores, petrol pumps, etc. to get rid of these notes. However, it is necessary to be aware of the actual situation without causing confusion and spreading wrong information. Here’s what you need to know:

The 2000-rupee notes will continue to be recognized as legal tender even after September 30^th. The common man can continue transacting and receiving payments using these notes.

You can go to banks or Regional Offices of RBI to exchange your 2000-rupee notes from May 23^rd, i.e today.

The RBI has stated that you can exchange up to 10 notes of Rs. 2000 in one go. Thus, you can exchange Rs. 20,000 at a time. However, business correspondents have to face a limit of Rs. 4,000, which means that only 2 notes of Rs. 2000 can be deposited. The exchange facility will also be available at 19 RBI Regional Offices with Issue Departments until September 30.

You don’t need to be an account holder of the bank in which you are going to exchange these notes. You can exchange your 2000- rupee notes at any bank.

The State Bank of India announced that customers can exchange their ₹2,000 denomination banknotes for up to ₹20,000 at branches without needing a requisition slip. Additionally, there is no requirement to submit any identity proof during the exchange process.

The exchange facility can be availed free of cost.

If you have a requirement of more than Rs. 20,000, what you can do is deposit more than Rs. 20,000 as deposits have no restrictions. Thereafter, you can withdraw money as per your needs.

If you’re a senior citizen or a specially-abled individual, you do not need to worry as RBI has instructed banks to make special arrangements to reduce any inconvenience.

If a bank declines to exchange/accept the deposit of 2000- rupee notes, you can approach the bank directly as a first step. In the event of no response from the bank within 30 days of lodging a complaint or if you are dissatisfied with the bank’s response, you can file a complaint under the Reserve Bank – Integrated Ombudsman Scheme, 2021. This can be done through the Complaint Management System portal of RBI.

Given the recent news on the withdrawal of 2000-rupee notes, it is imperative that the public keep their calm and refrain from unnecessary panic. The RBI has assured that it will accept these notes as legal tender even after September 30. So, let’s smoothly handle this transition by staying informed and composed, and let’s refrain from spreading false information.