“FAQ on Rs 2,000 Banknote Withdrawal: Everything You Need to Know”

All FAQ ON 2000 Note Policy is just below of initial briefing

The Reserve Bank of India (RBI) has announced the withdrawal of the Rs 2,000 denomination banknotes from circulation. However, these banknotes will still be considered legal tender. The decision to withdraw the Rs 2,000 notes is based on several factors. Firstly, the introduction of the Rs 2,000 note in 2016 was primarily to meet the immediate currency requirement after the withdrawal of the Rs 500 and Rs 1,000 notes. With that objective fulfilled and an adequate supply of other denominations, the printing of Rs 2,000 notes was stopped in 2018-19. Additionally, a majority of the Rs 2,000 notes were issued prior to March 2017 and are reaching the end of their estimated life span of 4-5 years. Furthermore, this denomination is not commonly used for transactions, and there is a sufficient stock of banknotes in other denominations to meet public demand.

The Clean Note Policy of the RBI aims to ensure the availability of good quality banknotes to the public. The legal tender status of the Rs 2,000 banknotes remains unchanged, and they can still be used for normal transactions. However, it is encouraged for the public to deposit and/or exchange these banknotes on or before September 30, 2023.

If individuals possess Rs 2,000 banknotes, they can approach bank branches for depositing and/or exchanging them. This facility will be available at all banks and RBI’s Regional Offices (ROs) with Issue Departments until September 30, 2023. There is no limit on depositing Rs 2,000 banknotes into a bank account, subject to compliance with Know Your Customer (KYC) norms and other applicable requirements. However, the exchange of Rs 2,000 banknotes is limited to Rs 20,000 at a time for the general public and Rs 4,000 per day for account holders through Business Correspondents (BCs).

The exchange facility will be available from May 23, 2023, at bank branches and ROs of RBI. Non-account holders can also exchange Rs 2,000 banknotes up to a limit of Rs 20,000 at a time. If someone requires more than Rs 20,000 cash for business or other purposes, they can deposit the Rs 2,000 notes into their bank accounts and withdraw cash against those deposits.

The exchange facility is provided free of cost, and banks have been instructed to make arrangements to reduce inconvenience for senior citizens and persons with disabilities. The RBI has allowed a period of over four months for the deposit and/or exchange of Rs 2,000 banknotes to ensure a smooth and convenient process for the public. In case of any grievances or refusal by a bank to exchange or accept the Rs 2,000 banknotes, individuals can approach the concerned bank and, if necessary, lodge a complaint through the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS) 2021 at the Complaint Management System portal of RBI.

FAQ

1. Why are Rs 2,000 denomination banknotes being withdrawn?

Answer:

The Rs 2,000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934 primarily with the objective to meet the currency requirement of the economy in an expeditious manner after withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time. With the fulfilment of that objective and the availability of banknotes in other denominations in adequate quantities, the printing of Rs 2,000 banknotes was stopped in 2018-19.

A majority of the Rs 2,000 denomination notes were issued prior to March 2017 and are at the end of their estimated life span of 4-5 years. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.

In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the Rs 2,000 denomination banknotes from circulation.

2. What is the Clean Note Policy?

Answer:

It is a policy adopted by RBI to ensure the availability of good quality banknotes to the members of the public.

3. Does the legal tender status of Rs 2,000 banknotes remain?

Answer:

Yes. The Rs 2,000 banknote will continue to maintain its legal tender status.

4. Can Rs 2,000 banknotes be used for normal transactions?

Answer:

Yes. Members of the public can continue to use Rs 2000 banknotes for their transactions and also receive them in payment. However, they are encouraged to deposit and/or exchange these banknotes on or before September 30, 2023.

5. What should the public do with the Rs 2,000 denomination banknotes held by them?

Answer:

Members of the public may approach bank branches for deposit and/or exchange of Rs 2,000 banknotes held by them.

The facility for deposit into accounts and exchange for Rs 2,000 banknotes will be available at all banks until September 30, 2023. The facility for exchange will be available also at the 19 Regional Offices (ROs) of RBI having Issue Departments1 until September 30, 2023.

6. Is there a limit on deposit of Rs 2,000 banknotes into a bank account?

Answer:

Deposit into bank accounts can be made without restrictions subject to compliance with extant Know Your Customer (KYC) norms and other applicable statutory/regulatory requirements.

7. Is there an operational limit on the amount of Rs 2,000 banknotes that can be exchanged?

Answer:

Members of the public can exchange Rs 2,000 banknotes up to a limit of Rs 20,000 at a time.

8. Can Rs 2,000 banknotes be exchanged through Business Correspondents (BCs)?

Answer:

Yes, an exchange of Rs 2,000 banknotes can be made through BCs up to a limit of Rs 4,000 per day for an account holder.

9. From which date will the exchange facility be available?

Answer:

To give time to the banks to make preparatory arrangements, members of the public are requested to approach the bank branches or ROs of RBI from May 23, 2023, for availing exchange facility.

10. Is it necessary to be a customer of the bank to exchange ₹2000 banknotes from its branches?

Answer:

No. A non-account holder also can exchange Rs 2,000 banknotes up to a limit of Rs 20,000 at a time at any bank branch.

11. What if someone needs more than ₹20,000 cash for business or other purposes?

Answer:

Deposits into accounts can be made without restrictions. The Rs 2,000 banknotes can be deposited into bank accounts and cash requirements can be drawn thereafter, against these deposits.

12. Is there any fee to be paid for the exchange facility?

Answer:

No. The exchange facility shall be provided free of cost.

13. Will there be special arrangements for senior citizens, persons with disabilities, etc. for exchange and deposit?

Answer:

Banks have been instructed to make arrangements to reduce inconvenience to senior citizens, persons with disabilities, etc., seeking to exchange/deposit Rs 2,000 banknotes.

14. What will happen if one cannot deposit/exchange Rs 2,000 banknote

immediately?

Answer:

To make the entire process smooth and convenient for the public, a period of over four months has been given for the deposit and/or exchange of Rs 2,000 banknotes. Members of the public, are, therefore, encouraged to avail of this facility at their convenience within the allotted time.


15. What will happen if a bank refuses to exchange/accept/deposit of Rs 2,000 banknote?

Answer:

For redress of grievance in case of deficiency of service, the complainant / aggrieved customer may first approach the concerned bank. If the bank does not respond within a period of 30 days after lodging the complaint or if the complainant is not satisfied with the response/resolution given by the bank, the complainant can lodge the complaint under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 at the Complaint Management System portal of RBI (cms.rbi.org.in).

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