From Our Bureau
NEW DELHI: The Reserve Bank of India (RBI) in Mumbai announced withdrawal of Rs 2,000 denomination banknotes after September 30 from circulation, advising banks to stop issuing them with immediate effect and entertain public to exchange these notes with the lower currency notes.
The facility to deposit into accounts and exchange for Rs 2,000 banknotes will be available free of cost What happens at all banks until September 30 and the exchange also allowed at the 19 regional offices of the RBI. The facility starts from May 23.
There is a limit of Rs 20,000 for exchange of Rs 2,000 bank notes. Deposits into the KYC-prescribed bank accounts can be made without resstrictions. These notes can also be exchanged through the business correspondents, subject to a limit of Rs 4,000 per day for an account holder.
The RBI press note says the Rs 2,000 banknotes will continue to maintain its legal tender status and the public can continue to use them for their transactions. However, they are advised to deposit or exchange these banknotes before Septembere 30 by approaching the bank branches.
Most of the Rs 2,000 banknotes were issued prior to March 2017 after the demonetisation in November 2016 and they are at the end of their estimated life span of 4-5 years.
The decision to pull out these notes was taken since it is not commonly used for transaction. Further, the stock of banknotes in other denomination continue to be adequate to meet the currency requirement of the public. This is in tune with the clean note policy to ensure availability of good quality banknotes.
It is not necessary for a customer to exchange the banknotes from his bank branch. The limit of Rs 20,000 at a time remains for the non-account holders.
As regards someone requiring more than Rs 20,000 cash for business or other purpose. Deposit into accounts can be made without restrictions. The ₹2000 banknotes can be deposited into bank accounts and cash requirements can be drawn thereafter, against these deposits.
What happens if one cannot deposit or exchange Rs 2,000 banknotes immediately.
To make the entire process smooth and convenient to the people, a period of over four months has been given and public is advised to avail this facility at their convenience within the allotted time.
If a bank refuses to exchange or accept deposit of Rs 2,000 bank notes, complain to the bank and if no response within 30 days, complain to the RBI.
