Rs 2000 Notes Archives - Lokmarg

No Need To Rush To Banks For Exchanging ₹2,000 Notes: RBI

By LokMarg 22nd May 2023

Reserve Bank of India Governor Shaktikanta Das on Monday reiterated that Rs 2000 notes will continue to be a legal lender, after the Central bank’s announcement that the notes will be withdrawn from circulation.

He also said he doesn’t expect a rush in the branches and urged people to not rush to banks.

The Governor said the Rs 2000 note was primarily issued to replenish money, taken out from the system during the demonetisation of Rs 500 notes and Rs 1,000 notes.

Shaktikanta Das in an interaction with media persons today said that the higher value of currency was manufactured in a brief period of time to increase liquidity in the economy. He also added that Rs 2000 notes circulation came down below 50 per cent since then.

On being asked about the deadline of September 30, the governor said the deadline, given for Rs 2000 notes exchange, was decided so that it would be taken seriously.

The apex bank’s governor said that it will revisit the September deadline based on the situation.

The Reserve Bank of India on Friday withdrew the Rs 2000 denomination banknotes from circulation but they will continue to remain as legal tender. It advised banks to stop issuing Rs 2000 denomination banknotes with immediate effect.

Meanwhile, RBI said that people would continue to be able to deposit Rs 2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch up to September 30, 2023.

The Rs 2000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time. (ANI)

No Forms, ID Card Needed To Exchange ₹2,000 Notes: SBI

By LokMarg 21st May 2023

State Bank of India (SBI) customers will not be required to submit any ID cards or fill out any requisition forms to exchange their Rs 2000 currency notes. They however would be allowed to exchange a maximum of ten currency notes of Rs 2000 at a time, according to a communication shared by the SBI with all its circles.

SBI, in its communication with all the circles, also clarified its May 19 Annexure III – a requisition slip having dedicated columns for details of customer’s identity proof, now stands withdrawn with immediate effect.

“Please arrange accordingly and extend all cooperation to members of the public so that the exercise is conducted in a smooth and seamless manner without any inconvenience to the public,” SBI said in its communication.

The Reserve Bank of India (RBI) on Friday decided to withdraw the Rs 2000 denomination currency notes from circulation, but added they (currency notes) will continue to remain as legal tender.

RBI had advised banks to stop issuing Rs 2000 denomination banknotes with immediate effect.

RBI, however, said that citizens will continue to be able to deposit Rs 2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch up to September 30, 2023.

The exchange of Rs 2000 banknotes into banknotes of other denominations can be made upto a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.

“It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public,” RBI said Friday.

The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of Rs 2000 banknotes was stopped subsequently in 2018-19, stated RBI.

About 89 per cent of the Rs 2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life span of four-five years.

The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as of March 31, 2018 (37.3 per cent of Notes in Circulation) to Rs 3.62 lakh crore constituting only 10.8 per cent of Notes in Circulation on March 31, 2023. (ANI)

Rs 2,000 Notes To Remain Legal Tender Even After Sept 30

By LokMarg 19th May 2023

The Rs 2,000 denomination bank notes which the RBI has decided to withdraw from circulation will continue to remain legal tender even after September 30, sources informed ANI.

The central bank believes that four-month time is enough for people to exchange these notes at banks. Most of the Rs 2,000 notes that are in circulation are expected to return to banks within the given time frame of 30 September.
This is a routine exercise of RBI and people need not panic, the source added.

“Rs 2000 currency note will remain legal tender after 30th September too. RBI expects that 4 month time is enough for people to exchange notes with the banks. Most of the Rs 2000 notes that are in circulation will return to banks within the given time frame of 30th September. This is a routine exercise of RBI and people need not panic,” the source told ANI.

Meanwhile, the central bank has advised banks to stop issuing Rs 2000 denomination banknotes with immediate effect.

About 89 per cent of the Rs 2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life span of four-five years.

It added, “In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs 2000 banknotes into banknotes of other denominations can be made upto a limit of Rs 20,000 at a time at any bank starting from May 23, 2023”. (ANI)