The Reserve Bank of India (RBI) made an announcement on May 19, 2023, regarding the discontinuation of Rs 2,000 notes in circulation. September 30th marks the final day for note exchanges, and with the deadline fast approaching, individuals must complete the exchange process within the remaining few days.
The central bank had urged individuals to either deposit their Rs 2,000 notes in banks by September 30 or exchange them for notes of different denominations. Today, we’ll explore the process of exchanging Rs 2,000 notes.
Exchange Process at Banks and RBI Offices:
The facility for exchanging Rs 2000 notes remains accessible at the 19 regional offices of the RBI until September 30. Individuals can also undertake this transaction at their nearest bank branches.
Until September 30, individuals have the option to deposit or exchange Rs 2,000 notes into their respective bank accounts. To minimise disruption to the normal operations of bank branches, the exchange of Rs 2,000 notes, up to a total value of Rs 20,000, is permissible. However, complying with KYC norms and adhering to other legal procedures is mandatory when depositing Rs 2,000 notes into a bank account.
Depositing Rs 2000 Notes:
For individuals looking to deposit their Rs 2,000 notes, there are some variations in the guidelines. The RBI has explicitly stated that there is no specified deposit limit for Rs 2,000 notes.
However, standard KYC regulations and other statutory requirements for cash deposits will still apply.
When depositing Rs 2,000 notes into a Basic Savings Bank Deposit (BSBD) or Jan Dhan account, the usual limits will be in effect. It’s important to note that individuals depositing Rs 50,000 or more must comply with Rule 114B of the Income Tax Rules, which requires the provision of a PAN number.
Nevertheless, for amounts below Rs 50,000 in a single day, quoting PAN is not mandatory.
Rs 2,000 notes circulation
As of the beginning of September, information provided by the RBI indicates that approximately 93 percent of the Rs 2,000 notes that were withdrawn from circulation have been returned to the banks.
According to a RBI statement, data from banks reveals that the total value of Rs 2,000 notes deposited in banks as of August 31, 2023, amounted to Rs 3.32 lakh crore. Consequently, on August 31, only Rs 2,000 notes worth Rs 0.24 lakh crore remained in circulation.
On August 1, the RBI reported that as of July 31, Rs 3.14 lakh crore worth of Rs 2,000 banknotes, equivalent to 88 percent of the total, had re-entered the banking system.
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