End of Rs. 2000 Notes? Here is all you need to know. | Fresio Blogs

 A sudden circulation from the Reserve Bank of India(RBI) has created confusion amongst Indians as the facts that lay behind this decision still remain undiscovered.

The RBI on 19th of May, 2023, by means of a circular, issued a notice that Rs. 2000 notes that are currently in circulation will be withdrawn slowly from the market while it will still hold its “Legal Tender” status.

Now what does that mean? This means that you can still use it for your transactions but you should reduce its use and use other smaller denomination currencies like Rs. 100, Rs. 200, and Rs. 500 notes. You can deposit your Rs. 2000 denomination notes to your bank and get a smaller denomination note in return.

The central bank also stated that you can exchange Rs. 2000 notes with smaller denomination notes up to the limit of Rs. 20,000 at a time to avoid operational inconvenience and disruption of regular activities of bank branches.

Here are the answers to all the questions you might have.

1. Why were Rs. 2000 notes withdrawn?
   Introduced in November of 2016, the Rs.2000 denomination notes were introduced with the primary adjective of meeting the urgent need of the economy, created after the withdrawal of the legal tender status of all Rs. 500 and Rs. 1000 notes that were in circulation before, in a speedy and efficient manner. 
   With the fulfillment of that objective, and now that the other smaller denomination notes are available in the market in abundant quantities, the printing of Rs. 2000 notes was stopped in 2018–2019.
   With a majority of Rs. 2000 denomination notes being issued prior to March 2017, the notes are now at the end of their estimated life span of 4–5 Years. Also, a review conducted also concluded that Rs. 2000 notes are not commonly used for transactions.
   Therefore, in view of the above and in pursuance of the “Clean Note Policy” of the RBI, it has been decided to withdraw Rs. 2000 denomination noted from circulation.
   
   
2. Can Rs. 2000 notes still be used for normal transactions? Is Rs. 2000 note still legal tender?
   Yes, Rs. 2000 notes are still legal tenders and can still be used for regular payments and receipts. However, you are encouraged to deposit/exchange these notes before 30th September 2023.
   
   
3. What is a Clean Note Policy?
   A Clean Note Policy is a policy adopted and practiced by RBI to ensure the circulation of good quality banknotes to the members of the public.
   
   
4. What should you do if you have Rs. 2000 notes?
   The public is notified not to panic because this is not demonetization or the Rs. 2000 notes are not going to go priceless. You can approach your bank on or before 30th September 2023, and deposit/exchange it in return for smaller denomination notes.
   You can also avail of the deposit and exchange facility at 19 Regional Offices of RBI that has issue departments. This can be done on or before September 30, 2023.
   
   
5. Is there a limit to how much Rs. 2000 notes you can deposit?
   Deposits can be done without any restrictions and as per the prevailing compliance, know your customer(KYC) norms, and other statutory requirements that your bank currently has.
   
   
6. Is there a limit to how much money can get in exchange at a particular time?
   Yes. Members of the public can exchange Rs. 2000 banknotes up to a limit of Rs. 20,000 at a time.
   
   
7. From which date and till which date will the exchange facility be available?
   The exchange facility will be available from May 23, 2023, for availing the exchange facility. You can avail of this facility till September 30, 2023.
   
   
8. I don’t have a bank account. Can I still exchange my Rs. 2000 notes from any bank?
   Yes. A non-account holder can also exchange Rs. 2000 banknotes up to a limit of Rs. 20,000 at a time at any bank branch.
   
   
9. What if I need more than Rs. 20,000?
   You can deposit without any restriction and exchange Rs. 2000 up to a limit of Rs. 20,000 at a time. You can always withdraw more thereafter.
   
   
10. Do I need to pay any fee to avail of the exchange facility?
    No. The exchange facility is provided free of cost.
    
    
11. Is there a special arrangement for senior citizens, persons with disabilities, etc.?
    Banks have been asked to make arrangements to make it easier for senior citizens, persons with disabilities, etc. who have come to avail of the exchange/deposit facility.
    
    
12. What will happen if the bank refuses to exchange/accept/deposit Rs. 2000 notes?
    For any grievance, the customer may first approach the concerned bank. If the bank does not respond within a period of 30 days after lodging the complaint, the complainant can lodge the complaint under the Reserve Bank-Integrated Ombudsman Scheme (RB-IOS), 2021 at the Complaint Management System Portal of RBI (cms.rbi.org.in).
    
    If you found this blog helpful, please share it with your friends and family and help them get out of all the confusion.