Rs 2000 notes exchange date extended
The notes can be exchanged/deposited till Oct 7 in bank branches, after that exchange can take place only at 19 regional offices of RBI
NEW DELHI: The Reserve Bank of India (RBI) on Saturday extended the deadline for the exchange of Rs 2,000 banknotes until October 7, 2023. The original deadline was set to expire on September 30. The decision to extend the exchange period was made after reviewing the withdrawal process, said RBI.
“As the period specified for the withdrawal process has come to an end, and based on a review, it has been decided to extend the current arrangement for the deposit/exchange of Rs 2000 banknotes until October 7, 2023,” RBI stated in a statement.
RBI also informed that out of the total value of Rs 3.56 lakh crore worth of Rs 2,000 banknotes in circulation as of 19 May 2023, Rs 3.42 lakh crore has been returned. This means that only Rs 0.14 lakh crore worth of Rs 2,000 notes are currently in circulation. “Thus, 96% of the `2,000 banknotes in circulation as of May 19, 2023, has since been returned,” it added.
It also said that from October 8, 2023, banks will stop accepting Rs 2000 banknotes for credit to accounts or exchange to other denomination banknotes.
However, Rs 2000 banknotes will continue to be legal tender even after October 7. “Rs 2000 banknotes will continue to be allowed to be presented at the 19 Regional Offices of RBI having Issue Departments (RBI Issue offices) for credit to the bank accounts in India or exchange,” the RBI said.
Charan Singh, chief executive officer (CEO) of EGROW Foundation, said, “It appears that the central bank is implementing a systematic and scientific withdrawal process for the Rs 2,000 banknotes before completely phasing them out. Till October 7, individuals may feel compelled to exchange these notes at local banks, as they will only be accepted and deposited at the 19 regional RBI banks across the country from October 8 onwards.”
This approach aims to facilitate the exchange process and encourage people to complete the exchange within the specified timeframe, he added. The RBI had announced the withdrawal of Rs 2,000 denomination banknotes from circulation on 19 May this year.
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