RBI extends Rs 2,000 bank notes to 7 October 2023

RBI extends Rs 2,000 bank notes to 7 October 2023

The Reserve Bank of India has extended the date for the exchange or deposit of Rs 2,000 notes from 30 September 2023 to 7 October 2023.

The RBI released a press release on 30 September 2023 that said that the current arrangement for depositing or exchanging Rs 2,000 notes would be extended until October 7th, 2023 due to the expiration of the withdrawal period.

The issuance of 2,000 notes will be a major boost to the Indian economy.

The new procedure to exchange rs 2000 notes will be implemented from 8 October 2023.

a) deposits or exchanges at bank branches will no longer be accepted.

b) Individuals and entities can exchange Rs 2,000 notes at the RBI Issue Offices, with a limit of Rs 20,000 per transaction.

c) People and businesses can deposit Rs 2,000 banknotes at the 19 RBI Issue Offices and credit them to their Indian bank accounts.

The domestic individuals and individuals can send Rs. 2,000 banknotes through India Post to any of the 19 RBI Issue Offices for crediting to their bank accounts in India.

These transactions are subject to various RBI and government regulations, necessitating proof of identity and compliance with RBI's due diligence processes.

Courts, law enforcement agencies, government departments, or other public bodies involved in investigations or enforcement can deposit or exchange Rs 2,000 notes at any of the 19 RBI Issue Offices without any set limit.

The general public can exchange notes of Rs 2,000 up to a maximum limit of Rs 20,000.

Why did RBI demonetize 500 and 1000 rupee notes and replace them with new notes?

The new currency was introduced in November 2016 under section 24 of the RBI Act 1934, in order to quickly meet the currency requirements of the economy, after the demonetisation of all 500 and 1000 notes. The production of 2,000 rupees notes ceased in 2018-19 after achieving this objective and with an ample supply of banknotes in other denominations.

The RBI MPC said interest rate likely to be kept unchanged despite high CPI inflation.