How to Deposit or Exchange ₹2000 Note at Any Bank [FAQS]
On 19th May 2023, The Reserve Bank of India (RBI) announced its decision to withdraw the ₹2000 denomination banknotes from circulation. This became shocking news for the nation, and many interpreted it as a second wave of demonetization announced in 2016. Today in this read, we will be answering your commonly asked questions to help you clear your doubts, and how it is different from demonetization. Meanwhile, you can also learn about e-RUPI: how it works, benefits, and more.
Commonly Asked Questions About ₹2000 Banknotes Withdrawn From Circulation
This is not the first time, for The Reserve Bank of India to announce the withdrawal of notes from circulation. A similar decision was announced back in 2013-2014, to completely withdraw banknotes issued prior to 2005 from circulation in the economy. This is just an extension of the same decision, to withdraw banknotes of ₹2000 denomination from 30th September 2023. Below we have answered all your questions about this.
Q. Why Are ₹2000 Denomination Indian Banknotes Being Withdrawn?
Back in November 2016, when the ₹2000 denomination banknotes were issued by the Reserve Bank of India, under Section Section 24 (1) of the RBI Act, 1934. Its sole purpose was to fill in for the ₹500 and ₹1000 banknotes withdrawn from circulation and to meet the currency requirement of the economy in a speedy manner. This was continued till March 2017, and the majority of the ₹2000 denomination notes were issued prior to this date.
In 2018-19 when this shortage was met with the availability of banknotes in other denominations (₹500, ₹200, ₹100, ₹50, ₹20, and ₹10) in adequate quantities, the printing of ₹2000 banknotes was stopped. And banknotes of ₹2000 denomination were slowly phased out from the money flow, as they weren’t available for ATM withdrawals. Now, banknotes of ₹2000 denomination printed till March 2017 are at the end of their estimated life span of 4-5 years. As per the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the ₹2000 denomination banknotes from circulation.
Q. What Is the “Clean Note Policy” of the Reserve Bank of India?
The Clean Note Policy was introduced in 1999, by the then RBI Governor, Dr Bimal Jalan. This policy was adopted to ensure good quality bank notes are available to the public. As per the Clean Note Policy, banks and financial institutions are required to withdraw unfit or damaged notes from circulation, for destruction as per the procedure, and replace them with new ones.
Q. Will ₹2000 Banknotes Remain as Legal Tender in India?
Yes, the ₹2000 banknote will continue to remain as legal tender in the country. However, RBI has not stated whether it will be treated differently after 30th September 2023. RBI has asked the public to deposit and/or exchange these banknotes on or before September 30, 2023.
Q. Can I Use ₹2000 Notes for Regular Transactions?
Yes, the ₹2000 banknotes can still be used for regular transactions and continue to receive payment in such banknotes. However, RBI has asked the public to deposit and/or exchange these banknotes on or before September 30, 2023.
Q. Where Can I Exchange the ₹2000 Banknotes I Have?
RBI has asked the public to visit any nearby bank branches to exchange their banknotes of ₹2000 denomination. The exchange facility will also be available at the 19 Regional Offices (ROs) of RBI having Issue Departments until September 30, 2023.
Q. How to Exchange the ₹2000 Banknotes at Any Bank?
You need to visit any nearby bank, with ₹2000 banknotes up to a limit of ₹20,000/- at a time, with your bank account details (if you have an account in the same bank), and carry any of the valid Identification Documents (Aadhaar Card, Driving Licence, Voter ID Card, Passport, NREGA Card and Population Register). At the branch, you need to fill out a form to get your ₹2000 banknotes exchanged.
This is the form you have to fill up if you want to exchange 2000 rupee notes.
This is ‘legal’ tender, or presumption of suspicious tender? pic.twitter.com/TlCas0u5cD
— mohitsatyanand (@mohitsatyanand) May 20, 2023
Q. I Live in a Village and There Are Not Any Bank Branches Nearby. How Can I Exchange My ₹2000 Notes?
If there are no banks in your area, you can exchange your ₹2000 banknotes through Business Correspondents up to a limit of ₹4000/- per day for an account holder. RBI may also provide mobile vans for the deposit/exchange facility to people residing in remote/unbanked areas, if necessary.
Q. Is There Any Special Arrangement for Senior Citizens to Exchange/Deposit ₹2000 Banknotes?
RBI has instructed the banks to make special arrangements to reduce inconvenience to senior citizens, persons with disabilities, and women seeking to exchange/deposit ₹2000 notes, to a feasible extent.
Q. Do I Have to Visit Only My Bank to Exchange ₹2000 Banknotes?
No. You can visit any bank or branch since a non-account holder also can also exchange ₹2000 banknotes up to a limit of ₹20,000/- at a time at any bank branch.
Q. I Need More Than ₹20,000/- Cash for Business or Other Purposes, Can I Exchange More Than ₹20,000 at a Time?
No, the maximum limit to exchange ₹2000 is up to ₹20,000 at a time. However, there is no such restriction on deposit into accounts. The ₹2000 banknotes can be deposited into bank accounts and cash requirements can be drawn after that, against these deposits.
Q. Do I Have to Pay Any Fee for Exchanging ₹2000 Notes?
No, Banks, Regional RBI offices, Business correspondents, and mobile vans (if required) will provide the exchange facility free of cost to the public. You need to carry your account details, and identity documents for KYC purposes.
Q. Can I Deposit ₹2000 Notes at the Cash Deposit Machine?
As of now, there is no clarity that whether the public can deposit the ₹2000 notes at the cash deposit machine. We will update this page whenever we get to know about it.
Q. How to Report if a Bank Refuses to Exchange / Accept the Deposit of ₹2000 Banknote?
You should first approach the bank to report the deficiency of service and wait for 30 days for the bank to respond. If the bank fails to respond within 30 days, or if you are not satisfied with the response/resolution given by the bank. You can file a complaint to RBI Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021.
We tried to answer all the commonly asked questions about the withdrawal of banknotes of ₹2000 denomination in India. The process to exchange these ₹2000 banknotes, will commence starting May 23, 2023. Feel free to ask any of your questions, we will update this page as soon as we get more information. Stay tuned to GadgetsToUse for more such reads around India, tech how-to, and reviews.
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