Withdrawal of ₹2000 notes: Here are dos and don’ts for public

New Delhi: Reserve Bank of India (RBI) has announced the withdrawal of ₹2000 denomination banknotes from circulation.

The decision comes as part of the RBI's efforts to align with the "Clean Note Policy" and ensure the availability of good quality banknotes to the public. While the ₹2000 banknotes will continue to maintain their legal tender status, the RBI encourages individuals to deposit or exchange them before September 30, 2023.

Following are the guidelines for the public regarding the withdrawal process, exchange facilities, and other pertinent details to ensure a smooth transition.

Reasons for withdrawal:

- Meeting currency requirements after the withdrawal of ₹500 and ₹1000 banknotes in 2016.

- Printing of ₹2000 banknotes discontinued in 2018-19.

- The majority of ₹2000 notes were issued before March 2017, reaching the end of the estimated lifespan.

- Not commonly used for transactions.

- Adequate stock of banknotes in other denominations available to meet currency requirements.

Clean note policy:

- RBI's policy to ensure the availability of good quality banknotes to the public.

Legal tender status:

- ₹2000 banknotes will continue to maintain their legal tender status.

According to Venkataramaiah, the General Secretary of the Bank Employees Federation of India, Telangana, the ₹2000 banknotes will retain their legal tender status. He clarifies that legal tender status implies government approval, and the value of the ₹2000 note remains unchanged until September 30, 2023. Transactions involving this denomination should continue as usual. However, Ramaiah acknowledges that people may hesitate to accept or circulate the banknote due to the perception that it is being phased out. Nevertheless, it is important to note that the value of the ₹2000 banknote remains valid until September 30.

Usage for transactions:

- The public can continue using ₹2000 banknotes for transactions and accepting them as payment.

- Encouraged to deposit and/or exchange these banknotes before September 30, 2023.

Actions for the public:

- Approach bank branches or RBI's Regional Offices for depositing or exchanging ₹2000 banknotes.

- Deposit and exchange facility available until September 30, 2023.

- No limit on depositing ₹2000 banknotes into a bank account (subject to KYC norms).

- Exchange limit of ₹20,000/- at a time for the public.

- Exchange limit of ₹4,000/- per day through Business Correspondents for account holders.

- Exchange facility available from May 23, 2023.

- Non-account holders can also exchange ₹2000 banknotes up to ₹20,000/- at any bank branch.

Cash requirements:

- Deposit ₹2000 banknotes into a bank account without restrictions.

- Cash requirements can be drawn against these deposits.

No fee for exchange:

- Exchange facility provided free of cost.

Special arrangements:

- Banks are instructed to reduce inconvenience for senior citizens and persons with disabilities.

Flexibility of time:

- Over four months given for depositing and/or exchanging ₹2000 banknotes.

- Encouraged to avail this facility at their convenience within the allotted time.

Grievance redressal:

- Approach the concerned bank for complaints.

- Unsatisfied or unresponsive banks can be reported under RBI's Integrated Ombudsman Scheme (RB-IOS) at the Complaint Management System portal (cms.rbi.org.in).