With the September 30 deadline set by the Reserve Bank of India (RBI) for exchanging ₹2,000 notes approaching fast, people have less than a week remaining to deposit or exchange these high-denomination banknotes.
The RBI had announced earlier this year that the ₹2,000 notes will be withdrawn from circulation under its “clean note policy”. Launched in 2016 after the demonetisation drive, the pink-coloured ₹2,000 note was introduced to ease the cash crunch but soon became synonymous with hoarding and suspicious transactions. Its forthcoming withdrawal is being seen by experts as a move to curb circulation of black money and improve monetary transmission.
According to RBI guidelines, people can deposit these notes in their bank accounts till September 30 without any limits. However, know-your-customer (KYC) norms and other deposit rules will still apply.
For basic savings accounts, existing cash deposit restrictions remain in place. This means depositing over ₹50,000 in a day would require furnishing PAN details to the bank.
People can also exchange ₹2,000 notes at designated RBI offices and bank branches across India. Unlike for deposits, no document or reason needs to be furnished for exchanging up to 20 notes as they still remain legal tender.
Closure of Banks
With Thursday being an idle day for Milad-Un-Nabi, banks will remain closed. Friday and Saturday are the only remaining working days this week when the exchange/deposit can be done. As per RBI data, roughly ₹23,000 crore worth of ₹2,000 notes were still in circulation till September 1.
What Happens After September 30?
Post the deadline, the ₹2,000 notes will continue to be legal but cannot be used for monetary transactions. One can only deposit/exchange them at RBI offices by providing a justified reason for missing the deadline.
Experts say this move will boost digital payments and transparent transactions. It may also affect sectors like real estate where cash deals are common. However, the impact is expected to be limited given the ₹2,000 notes comprise only a small share of the total currency in circulation now.
With the deadline nearing, people are advised to deposit or exchange their ₹2,000 notes at the earliest to avoid any last-minute hassles. Though the notes will still hold value, using them for regular transactions will not be possible after September 30.