RBI extends limit on depositing Rs 2,000 bank notes

RBI extends limit on depositing Rs 2,000 bank notes

Mumbai (India): The Reserve Bank of India has extended the limit on depositing or exchanging Rs 2,000 denomination banknotes until October 7th, 2023.

The RBI originally set a date of 30 September to speed up the withdrawal process.

In a statement last month, the RBI said that approximately 93 per cent of Rs 2,000 banknotes have been returned to the banking system since May when the central bank announced the withdrawal of the high-denomination note from circulation.

The RBI has instructed people to exchange or deposit their Rs 2,000 notes at bank branches or regional branches of the RBI. Even non-account holders were able to exchange Rs 2,000 banknotes, up to a maximum of Rs 20,000 at a time, at any bank branch.

On 19 May, the RBI announced the decision to discontinue the circulation of the Rs 2,000 denomination notes, despite maintaining their status as legal tender. Banks were advised to stop issuing these banknotes immediately by the RBI.

In November 2016 the government introduced the new 2,000 rupee note, which was aimed at meeting the rapidly changing currency demands of the economy after the demonetization of all 500 and 1000 notes.

The government has said that the aim of introducing the Rs 2,000 notes was achieved once banknotes in other denominations became readily available in sufficient quantities.