The deadline for exchanging Rs. 2000 notes with banks has been moved to October 7, 2023. Only 19 RBI Issue Offices would accept deposits or exchanges of Rs. 2000 notes beyond October 7, 2023, subject to any RBI or government laws. The Reserve Bank of India (RBI) declared that as of April 1, 2024, 19 of its issuing offices will not accept deposits or exchanges of Rs. 2000 banknotes. Furthermore, the reopening of this facility is set for April 2, 2024.
In 2026, the government introduced Rs.2000 notes after demonetization came into the picture. On 19 May 2023, the Reserve Bank of India (RBI) announced that Rs.2000 note being India's highest denomination currency, will be withdrawn from 30 September 2023. The RBI shifted the last date for exchanging or depositing of Rs.2000 notes to 7 October 2023 instead of 30 September 2023. The RBI also declared that withdrawing Rs.2000 was due to its ‘Clean Note Policy’.
However, Rs.2000 will remain as legal tender after 7 October 2023. The RBI announced that people could visit their nearest bank branches and deposit or exchange their Rs.2000 banknotes by 7 October 2023. From 8 October, people can exchange or deposit Rs.2000 at only those 19 RBI Issue Offices up to a limit of Rs.20,000 at a time.
Printing of Rs.2000 notes:
Almost 89% of the Rs.2000 banknotes were issued before March 2017. The total value of Rs.2000 banknotes in circulation has declined from Rs.3.56 lakh crore as on 19 May 2023, to Rs.8,470 crore as on 29 February 2024. It has been observed that the Rs.2000 denomination currency is not frequently used for transactions. Further, the banknotes in other denominations continue to be sufficient for meeting the currency requirements of the public.
Deposit of Rs.2000 notes:
As per RBI data, by March 2024, around 97% of the Rs.2000 denomination notes in circulation as on 19 May 2023 have already been sent back. The RBI has declared that from the data received from banks, out of the total value of Rs.3.56 lakh crore of Rs.2000 banknotes in circulation as of 19 May 2023, Rs.3.42 lakh crore had been received by the banks, leaving only Rs.0.14 lakh crore in circulation as on 29 September 2023.
Deposit limit of Rs.2000 notes:
People can deposit Rs.2000 banknotes at the bank where they have an account. The RBI has said that an individual can deposit an unlimited number of Rs.2000 notes. However, the general KYC and other cash deposit statutory norms will be applicable. When a person deposits Rs.2000 notes in a Basic Savings Bank Deposit (BSBD) or Jan Dhan account, then the usual limits will be applicable.
Regarding this, Canara Bank has announced that deposits of Rs. 2,000 denomination notes will be exempt from all cash remittance fees, up to a 100% waiver covering both Savings and current accounts. According to Income Tax Rules, Bule 114B, a person must provide their PAN number if they deposit more than Rs. 50,000 in cash in a single day at a post office or bank. Therefore, the PAN number must be mentioned if someone wishes to deposit Rs. 2000 in banknotes, which is greater than Rs. 50,000, in a single day. When the total amount deposited in a single day is less than Rs.50,000, quoting the PAN is optional.
Last day to deposit Rs.2000 note :
According to the RBI, starting on May 23, 2023, individuals can deposit or exchange their Rs. 2000 notes at any bank or post office. Though 30 September 2023 was the deadline for deposits or exchanges of Rs. 2000 notes; this date has been extended to 7 October 2023.
No.of Rs.2000 notes to be deposited in a bank:
It has clearly been mentioned by RBI that there is no deposit limit for Rs.2000 notes that gives an individual the power to deposit n number of Rs.2000 notes in their accounts. However, the respective bank where you're depositing the money, and the rules of that bank for deposit will be applicable.
Deposit of Rs.2000 notes in CDM:
Individuals can exchange denominations of Rs. 2000 notes at the nearby Cash Deposit Machines (CDMs) at their convenience.
Exchange of Rs.2000 notes in Bank:
It is also possible for individuals to swap Rs. 2000 banknotes at any nearby bank branch between May 23, 2023, and October 7, 2023. The RBI made it clear that exchanging Rs. 2000 notes can be done over the counter without requiring a request slip or identification since these notes are still legal money for transactions made before October 7, 2023. Some public sector banks, though, have chosen a different approach.
RBI guidelines for Rs.2,000 note exchange:
After 7 October 2023
Nineteen RBI Issue Offices can exchange Rs. 2000 notes, with a maximum amount of Rs. 20,000 per transaction. The RBI's due diligence guidelines, the submission of legitimate identification proving documents and any applicable government or RBI laws will all apply to the exchange.
Before 7 October 2023:
To speed up the process of exchanging Rs. 2000 notes, customers with bank accounts can visit the branch where they currently have an account and provide their account details. According to RBI norms, exchanging Rs. 2000 notes does not require a requisition slip or identification. Additionally, according to the RBI, anyone without an account can swap Rs. 2000 in banknotes at any bank branch without presenting identification. The amount of banknotes that can be exchanged for Rs. 2000 is limited, nevertheless. Up to Rs. 20,000 can be exchanged for banknotes at a time by an individual. There is no charge for exchanging Rs. 2000 notes.
Exchange/deposit Rs.2000 banknotes after 7 October:
There are 19 Regional Offices of RBI that have Issue Departments or RBI Issue Offices through which the public can deposit or exchange Rs.2000 bank notes after 8 October 2023. People can tender Rs.2000 banknotes for credit to their bank accounts at the 19 RBI Issue Offices in India.
The locations of those 19 RBI Issue Offices are in Ahmedabad, Belapur, Bangalore, Bhubaneswar, Bhopal, Chennai, Chandigarh, Hyderabad, Guwahati, Jammu, Jaipur, Kolkata, Kanpur, Mumbai, Lucknow, Patna, New Delhi, Nagpur and Thiruvananthapuram.
Though there are issue offices, however, the credit or exchange is subject to relevant RBI, submission of identity proof documents with validity, regulations of the govt, and due diligence predetermined by the RBI.
Guidelines to exchange Rs.2000 notes by Banks:
Guidelines for exchanging Rs. 2000 banknotes from non-account holders have been released by some public sector banks, requiring the submission of identity documentation. A list of banks that have released guidelines about identification verification for exchanging Rs. 2000 notes by October 7, 2023, is discussed below.
State Bank of India (SBI)
As per the declaration by the State Bank of India (SBI) the public need not give or show any ID proof or fill up a requisition slip to exchange Rs.2000 notes up to the RBI exchange limit of Rs.20,000 at a time through any SBI branch.
Punjab National Bank
Punjab National Bank or PNB declared that any PNB branch will not ask for ID proof or to fill up a requisition slip in order to exchange Rs.2000 notes up to the exchange limit set by RBI i.e.Rs.20,000 at a time.
Indian Bank
For non-account holders, it is mandatory to submit ID proof, such as an Aadhaar card, driving license, or PAN card, to exchange Rs.2000 notes at Indian Bank.
HDFC Bank
HDFC Bank has mandated all its customers and non-customers to fill out a form if they want to exchange Rs.2000 notes. Though the Customers are not required to show any ID proof they must disclose their customer ID or bank account number on the form. At the same time, the Non-customers need to show ID proof while submitting the form for the exchange of Rs.2000 notes.
ICICI Bank
If any non-customer wants to exchange Rs.2000 notes through ICICI then they must fill out a cash deposit slip along with submission of ID proof and mobile number. However, there is a relaxation for its customers that there is no need to fill out any form or show ID proof to exchange Rs.2000 notes.
Kotak Mahindra Bank
Customers and even non-customers need to fill out a form if they want to exchange Rs.2000 banknotes through this bank. The customers don't need to show their ID as proof however their CRN and bank account number are mandatory to exchange notes. However, since the non-customers don't have an account in this bank, hence, they are mandated to show their ID to submit the form for the exchange of notes.
Conclusion:
The public must deposit the Rs.2000 notes by 7 October 2023 as per the RBI withdrawal announcement. There is an option to exchange the bank notes at any nearby branch without any ID proof but the exchange has a restriction up to Rs.20,000 at a time.
As per RBI's announcement 50% of Rs.2000 currency notes that are in circulation had to be sent back to banks within the next 20 days of the withdrawal announcement by RBI. Rs.1.8 lakh crore i.e.85% of Rs.2000 notes had been returned as of 8 June 2023 as bank deposits.
