If you possess Rs 2,000 currency notes, you might be pondering their status beyond September 30, which marks the final day for bank deposits or exchanges. With banks closed on September 28 due to a holiday, time is running out to return these notes. While there hasn't been any official announcement regarding a deadline extension, a substantial portion of Rs 2,000 notes in circulation have already made their way back to banks.
As of September 1, the Reserve Bank of India (RBI) reported that "The total value of Rs 2,000 banknotes received back from circulation is Rs 3.32 lakh crore up to August 31, 2023." Furthermore, as of August 31, 2023, only Rs 0.24 lakh crore worth of Rs 2,000 banknotes were still in circulation.
This indicates that 93 percent of the Rs 2,000 notes that were in circulation as of May 19, 2023, have already been returned through exchanges or account deposits. It's likely that additional deposits have been made in September, further reducing the notes' circulation. On October 1, the RBI is anticipated to provide an update, shedding light on the fate of the remaining Rs 2,000 notes still in circulation.
Although the RBI hasn't explicitly declared these notes invalid after the deadline, it's evident that the central bank intends to phase them out as part of its 'clean note policy.' The future status of Rs 2,000 notes will depend on the quantity returned or deposited in banks. With over 90 percent of these notes already returned, there's a strong likelihood that the RBI may announce a date when these high-denomination notes will cease to be considered legal tender.
In essence, the notes may not immediately lose their value, but an official announcement from the RBI is awaited. So, what's the process for depositing or exchanging Rs 2,000 notes? The process of returning them is straightforward. The RBI allows individuals to deposit these notes at their respective banks without a specific limit, although regular Know Your Customer (KYC) requirements and other legal deposit regulations still apply.
For those utilizing Basic Savings Bank Deposit (BSBD) or Jan Dhan accounts, the standard deposit limits apply. If you intend to deposit a substantial amount of Rs 2,000 notes into these accounts, you must adhere to the prescribed limits. Additionally, Rule 114B of the Income Tax Rules mandates individuals to provide their Permanent Account Number (PAN) when making cash deposits exceeding Rs 50,000 in a single day at a bank or post office.
Until September 30, you can also exchange Rs 2,000 notes at 19 Regional Offices (ROs) of the RBI or any nearby bank branch. The RBI's guidelines stipulate that these exchanges should be conducted without the need for a request slip or ID proof. However, it's advisable to have ID proof handy when exchanging these notes at some public sector banks, as they may have different procedures in place, ensuring a hassle-free experience.
