News

Published: October 2, 2023
Updated: October 2, 2023

RBI Extends Deadline for Exchanging Rs 2,000 Banknotes as 96% Return

In a pivotal move, the Reserve Bank of India (RBI) has decided to extend the deadline for exchanging or depositing Rs 2,000 banknotes. This development comes as 96% of these high-denomination notes have already found their way back into the banking system. The central bank's decision to grant more time for these transactions carries significant implications for the public.

Extended Deadline:

The RBI has officially announced the extension of the deadline for exchanging or depositing Rs 2,000 banknotes. The new cutoff date for these transactions is now set for October 7, 2023. This extension offers individuals more time to manage their holdings of these notes.

Continued Legal Tender:

It's important to note that despite this extended deadline, Rs 2,000 banknotes will remain legal tender. This means they can still be used for transactions, ensuring a smooth transition for both businesses and the general public.

Limitations Apply:

While the opportunity for depositing or exchanging these notes at commercial bank branches will conclude after October 7, there is a provision for customers. Those wishing to exchange their Rs 2,000 banknotes can still do so at 19 regional offices (ROs). However, a limit of Rs 20,000 per transaction will apply in these cases.

Data Highlights:

The RBI shared crucial data on the status of these banknotes. As of May 19, 2023, the total value of Rs 2,000 banknotes in circulation amounted to a substantial Rs 3.56 trillion. Remarkably, Rs 3.42 trillion of this value has already been returned to the banking system. This leaves only a minor fraction, Rs 0.14 trillion, still in circulation as of September 29, 2023.

Remarkable Turnaround:

The RBI's decision to withdraw the Rs 2,000 banknotes from circulation back in May is now supported by a remarkable outcome. The vast majority of these notes have been successfully returned, signifying a notable shift in India's currency landscape.

The RBI's extension of the deadline for exchanging or depositing Rs 2,000 banknotes until October 7, 2023, offers convenience to those still holding them. With the majority of these notes now back in the banking system, this move aligns with the central bank's strategy to manage currency circulation efficiently. As these notes continue to be legal tender, businesses and individuals can continue to use them for their financial transactions with confidence.