In a move to promote the “Clean Note Policy,” the Reserve Bank of India (RBI) has decided to withdraw the ₹2,000 denomination banknotes from active circulation. The ₹2,000 notes will still remain legal tender, but this step aims to address the availability of good quality banknotes and meet the changing currency requirements of the economy. This article provides an overview of the withdrawal process and answers key questions related to the decision.
1. Background and Reason for Withdrawal:
Introduced in November 2016, the ₹2,000 notes were initially intended to meet the currency requirement of the economy after the withdrawal of the ₹500 and ₹1,000 notes. Printing of these notes was halted in 2018-19, as the objective of their introduction had been fulfilled, and an adequate quantity of banknotes in other denominations was available. Furthermore, it was observed that the ₹2,000 denomination was not commonly used for transactions.
2. The Clean Note Policy:
The Clean Note Policy is an initiative undertaken by the RBI to ensure the availability of good quality banknotes to the public. It focuses on maintaining the integrity and cleanliness of banknotes in circulation, thereby improving their durability and overall usability.
3. Legal Tender Status and Usage:
Despite the withdrawal, the ₹2,000 banknotes will continue to retain their legal tender status. Individuals can still use these notes for transactions and receive them as payment. However, the RBI encourages the public to deposit and/or exchange these notes before September 30, 2023.
4. Deposit and Exchange Facility:
To facilitate the withdrawal process, the RBI has directed all banks to provide deposit and/or exchange facilities for ₹2,000 notes until the specified deadline. Individuals can deposit these notes into their bank accounts without restrictions, subject to compliance with applicable KYC norms and regulatory requirements.
For exchange purposes, individuals can exchange their ₹2,000 notes for banknotes of other denominations at any bank branch or at the 19 Regional Offices (ROs) of the RBI. The exchange limit is set at ₹20,000 at a time. Non-account holders are also allowed to exchange ₹2,000 notes at any bank branch.
5. Operational Guidelines and Special Considerations:
The RBI has issued guidelines to banks to ensure smooth implementation of the withdrawal process. Banks have been instructed to make arrangements to reduce inconvenience for senior citizens, persons with disabilities, and other individuals seeking to exchange or deposit ₹2,000 notes.
6. Business Correspondents (BCs) and Exchange Facility:
Exchange of ₹2,000 notes can be made through Business Correspondents (BCs) as well, with a limit of ₹4,000 per day for account holders.
7. Cash Requirement and Deposit Limit:
Individuals can deposit ₹2,000 notes into their bank accounts without any restrictions, enabling them to meet their cash requirements by withdrawing funds against these deposits.
8. Timeframe and Deadline:
To allow sufficient time for the public to complete the deposit and exchange process, the RBI has set a deadline of September 30, 2023. Individuals are encouraged to utilize this timeframe to deposit and/or exchange their ₹2,000 notes conveniently.
9. Grievance Redressal:
In case of any issues faced during the deposit or exchange process, individuals can approach the concerned bank for resolution. If the bank does not respond within 30 days or if the customer is dissatisfied with the response, they can lodge a complaint under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 through the Complaint Management System portal of the RBI.
Conclusion:
The RBI’s decision to withdraw ₹2,000 notes from active.
