RBI: Non-Account Holders Can Exchange Up To 10 ₹2,000 Notes At A Time At Any Bank Branch

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RBI Announces Withdrawal of ₹2,000 Banknote: What You Need to Know

RBI has recently made an announcement regarding the withdrawal of the ₹2,000 banknote, which was introduced after the demonetization in 2016. While the legal status of these notes remains unchanged, the public is encouraged to exchange or deposit them with banks. Let’s explore the key details of this process.

Reasons for Withdrawing the ₹2,000 Note

RBI introduced high-value notes as a swift replacement for the demonetized currency in 2016. However, with an adequate circulation of ₹500 notes to meet the economy’s demands, the ₹2,000 notes are no longer extensively used in day-to-day transactions. As part of its clean note policy and with the approaching end of their lifecycle, RBI has made the decision to withdraw these banknotes.

Legal Tender Status of the ₹2,000 Banknotes

The ₹2,000 banknote will continue to hold its legal tender status, allowing it to be used for transactions. However, it is highly encouraged that individuals deposit and/or exchange these banknotes (up to ₹20,000) between May 23, 2023, and September 30, 2023. Apart from banks, these notes can also be exchanged at RBI’s 19 regional offices.

Depositing and Exchanging Limits

There are no specific limits on deposits, as long as they comply with the existing Know Your Customer (KYC) norms and other applicable statutory/regulatory requirements. Additionally, business correspondents (BCs) can facilitate the exchange of these notes, but with a daily limit of ₹4,000 per account holder.

Exchange Option for Non-Account Holders

Even non-account holders have the opportunity to exchange up to ten ₹2,000 banknotes (₹20,000) at any bank branch.

Exceeding the ₹20,000 Exchange Limit

In cases where the amount to be exchanged exceeds ₹20,000, the ₹2,000 banknotes must be deposited into bank accounts, and cash requirements can be met by drawing against these deposits.

Obligations of Banks and Customer Assistance

Banks cannot refuse to exchange or accept the deposit of ₹2,000 notes. If such a refusal occurs, customers should report the issue to the bank’s grievance cell or escalate it to the ombudsman if necessary. Furthermore, banks are expected to provide necessary assistance to senior citizens and individuals with disabilities who wish to exchange or deposit these notes.

The RBI’s withdrawal of the ₹2,000 banknote aims to streamline the currency ecosystem while ensuring a smooth transition for the public.