Mumbai – In a recent announcement, the Reserve Bank of India (RBI) has granted a much-needed extension for the exchange and deposit of Rs 2,000 notes at bank branches. The initial deadline of September 30 has been pushed to October 7, providing relief to individuals and entities who still hold these high-denomination currency notes.
This extension comes as a welcome surprise to many as it allows customers more time to exchange their Rs 2,000 notes at bank branches. However, there are some noteworthy changes to the process after October 7. Customers can still exchange these notes, but only at the 19 RBI issue offices, and there’s a limit of Rs 20,000 at a time. Furthermore, individuals and entities can tender Rs 2,000 notes at these RBI issue offices for credit to their bank accounts in India for any amount, provided they comply with the relevant regulations, submit valid identity documents, and undergo due diligence.
The RBI has not provided specific reasons for the extension, but it may be seen as a response to the fact that approximately 96 percent of the Rs 2,000 notes in circulation have already been returned to the exchequer. Out of the total worth of Rs 3.56 lakh crore in Rs 2,000 notes initially in circulation, a staggering Rs 3.42 lakh crore has already been received by the authorities. This leaves only Rs 0.14 lakh crore in circulation as of the close of business on September 29.
A statement released by the RBI explained the decision: “As the period specified for the withdrawal process has come to an end, and based on a review, it has been decided to extend the current arrangement for deposit/exchange of Rs 2,000 banknotes until October 07.”
This extension provides a valuable opportunity for those who still possess Rs 2,000 notes to complete their exchanges or deposits without rushing, ensuring a smooth transition in the ongoing currency reforms.
