RBI extends deadline to return Rs 2,000 notes at bank branches till October 7

RBI

The Reserve Bank of India (RBI) on September 30 extended the deadline for public to exchange or deposit Rs 2000 notes at bank branches till 7 October following a review.

"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 deposit / exchange of Rs 2000 banknotes until October 07, 2023," the RBI said in a press release.

Subsequently, public can deposit  or exchange of Rs2000 banknotes at bank branches till October 07, 2023, the RBI said. The central bank said Rs 2000 banknotes will continue to be legal tender.

On September 29, Moneycontrol exclusively reported that the RBI is likely to extend the deadline for public for returning Rs2000 notes to facilitate remaining bank customers deposit or exchange Rs2000 notes. The original deadline for returning Rs2000 notes was set to expire on September 30.

What happens after October 7?

According to the RBI, even after October 7, customers can continue exchange these notes at the 19 RBI Issue offices up to a limit of Rs20,000 at a time. Also, individuals  and entities can tender Rs2000 banknotes at the 19 RBI issue offices for credit to their bank accounts in India for any amount, the RBI added.

Further, customers from within the country can also send Rs2000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices for credit to their bank accounts in India, the RBI added.

"Such exchange or credit shall be subject to relevant RBI / Government regulations, submission of valid identity documents and due diligence as deemed fit by RBI," the RBI said. The facility for deposit or exchange of Rs 2000 banknotes at the 19 RBI Issue Offices shall be available until further advice, the RBI added.

The RBI further said courts, law enforcement agencies, government departments or any other public authority involved in investigation proceedings or enforcement can deposit or exchange Rs2000 banknotes at any of the 19 RBI issue offices without any limit.

The RBI urged the members of the public to deposit or exchange the Rs2000 banknotes without any further delay.

About 96% of the Rs 2000 notes back

On May 19, the central bank announced the withdrawal of Rs 2,000 currency bills from circulation, citing it as part of its clean-note policy, and advised banks to stop issuing the bills with immediate effect. "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," the RBI had said.

According to the latest RBI release, about 96 per cent of the Rs2000 banknotes in circulation as on May 19, 2023 has since been returned.

The RBI, citing data received from banks, said of the total value of Rs 3.56 lakh crore of Rs2000 banknotes in circulation as on May 19, 2023, Rs3.42 lakh crore has been received back leaving only Rs 0.14 lakh crore in circulation as at the close of business on September 29, 2023.