Understanding the ₹2000 note withdrawal: Your questions answered

Are you confused about the recent announcement by the Reserve Bank of India (RBI) to withdraw the 2000 rupee note from circulation in India? Don't worry, you're not alone! In this article, we'll provide answers to frequently asked questions (FAQs) about the RBI's decision and explain what you need to do with your 2000 denomination notes. Read on and get all the information you need to understand this major development.  

1. Is the 2000 rupee note still valid?
 

Yes. Even though the RBI wants you to deposit or exchange ₹2000 notes by September 30, 2023, they will remain legal tender.

2. Why is the 2000-rupee note getting withdrawn?
 

₹2000-denomination banknotes were introduced in November 2016 under Section 24(1) of the RBI Act, 1934 in order to meet the country's currency requirement after withdrawing the legal tender status of all 500- and 1000-denomination banknotes at that time. With that objective achieved and banknotes in other denominations available in sufficient quantities, printing of 2000 banknotes was stopped in 2018-19.

Most 2000 denomination notes were issued prior to March 2017 and are reaching the end of their estimated lifespan of 4-5 years. Additionally, this denomination is not commonly used for transactions. Also, the public continues to have adequate access to banknotes in other denominations.

Considering the above, the Reserve Bank of India has decided to withdraw the 2000 denomination banknotes from circulation, pursuant to its 'Clean Note Policy'.

3. What do I do with 2000-rupee notes?
 

You may exchange or deposit them in any bank in India. Deposits into accounts and exchanges for ₹2000 banknotes will be available at all banks until September 30, 2023. The exchange facility will also be available at the 19 Regional Offices (ROs) of RBI until September 30, 2023.

Exchanging ₹2000 notes
 

4. How can I exchange ₹2000 notes?
 

The exchange facility for ₹2000 denomination notes will be available in all bank branches in India and at RBI regional offices from May 23, 2023.

5. Is there a limit on exchanging ₹2000 banknotes?
 

To minimize inconvenience to the public, ensure operational convenience, and prevent disruption of bank branches' regular activities, all banks can exchange the banknotes up to a limit of ₹20,000 at a time.

6. Where can I exchange ₹2000 notes?
 

You can exchange ₹2000 banknotes at all banks through their branches.

7. Do I have to be a customer of the bank to exchange 2000 banknotes?
 

No. Those without an account can also exchange ₹2000 banknotes at any bank branch up to a limit of ₹20,000/- at a time.

8. Is there any fee for the exchange facility?
 

No. Exchange facilities shall be provided free of charge.

Depositing ₹2000 notes
 

9. How can I deposit ₹2000 notes?
 

₹2,000 denomination banknotes may be deposited into any bank account in the usual manner, without restriction, and subject to compliance with Know Your Customer (KYC) requirements.

10. Is there a limit for depositing ₹2000 notes?
 

No, there is no limit to how many notes can be deposited. When crediting the ₹2000 notes to Jan Dhan Yojna Accounts / Basic Savings Bank Deposit (BSBD) Accounts, the usual limits apply.

11. What are the charges for depositing 2000-rupee notes in my bank?
 

Depositing 2000 rupee notes may incur the standard service charges that apply for depositing cash at branches as per the bank’s policy. Most banks charge a service fee for cash transactions over a certain value. IDFC FIRST Bank, however, offers zero-fee banking* with its Savings Accounts, where you can make unlimited cash deposits free of charge at any branch across India.

Other FAQs
 

12. What is the deadline for depositing/exchanging notes?
 

Deposit and/or exchange of 2000 rupee banknotes will be offered to the public until September 30, 2023.

13. What will happen if a bank refuses to exchange/accept a deposit of ₹2000 banknotes?
 

A complainant/aggrieved customer may first approach the concerned bank for redress of grievances in the event of service deficiency. The complaint can be filed under the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021 at the RBI Complaint Management System (cms.rbi.org.in) if the bank does not respond within 30 days of filing the complaint or if the complainant is not satisfied with the bank's response/resolution.

14. How do I get more than ₹20,000 in cash for a business or other reason?
 

While there is a ₹20,000-limit on note exchanges, the ₹2000 banknotes can be deposited into bank accounts without restriction. You can withdraw the cash you need from the deposits made against the ₹2000 banknotes. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.