₹ 2,000 Denomination Banknotes – Withdrawn from Circulation

With effect from October 08, 2023, the process for deposit/exchange of ₹ 2000 banknotes will be as follows:

• The facility of deposit/exchange at bank branches is not available

• ₹ 2000 banknotes can continue to be exchanged by individuals/entities at the 19 RBI Issue Offices up to a limit of ₹ 20,000 at a time

• Individuals/Entities can tender ₹ 2000 banknotes at the 19 RBI Issue Offices for credit to their Bank Accounts in India, for any amount

• Individuals/Entities from within the country can also send ₹ 2000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices for credit to their Bank Accounts in India

• Such exchange or credit will be subject to relevant RBI/Government regulations, submission of valid identity documents and due diligence, as deemed fit by RBI

• Courts, Law Enforcement Agencies, Government Departments or any other Public Authority involved in investigation proceedings or enforcement, may, as and when required, deposit/exchange ₹ 2000 banknotes at any of the 19 RBI Issue Offices without any limit.

Frequently Asked Questions (Questions 16 to 19) Updated as on September 30, 2023

₹ 2,000 Denomination Banknotes – Withdrawal from Circulation - Will continue as Legal Tender

1. Why are ₹ 2000 denomination banknotes being withdrawn?

   ₹ 2000 denomination banknotes were introduced in November 2016 under Section 24(1) of RBI Act, 1934, to meet the currency requirement of the economy in an expeditious manner, after withdrawal of the Legal Tender status of ₹ 500 and ₹ 1000 banknotes in circulation at the time. With the fulfilment of that objective and the availability of banknotes in other denominations in adequate quantities, printing of ₹ 2000 banknotes was stopped in 2018-19. A majority of ₹ 2000 denomination notes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to meet the currency requirement of the public.

   In view of the above and pursuant to the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw ₹ 2000 denomination banknotes from circulation.

2. What is the ‘Clean Note Policy’?

The ‘Clean Note Policy’ is a policy adopted by RBI, to ensure availability of good quality banknotes to members of the public.

3. Does the Legal Tender status of ₹ 2000 banknotes remain?

Yes. The ₹ 2000 banknote will continue to maintain its Legal Tender status.

4. Can ₹ 2000 banknotes be used for normal transactions?

Yes. Members of the public can continue to use ₹ 2000 banknotes for transactions and also receive them in payment. However, they are encouraged to deposit and/or exchange these banknotes on or before September 30, 2023.

5. What should the public do with ₹ 2000 denomination banknotes held by them?

Members of the public may approach bank branches to deposit and/or exchange ₹ 2000 banknotes held by them.

The facility for deposit into Accounts and exchange of ₹ 2000 denomination banknotes will be available at all banks till September 30, 2023. The facility for exchange will also be available at the 19 Regional Offices (ROs) of RBI having Issue Departments1, till September 30, 2023.

6. Is there a limit on the deposit of ₹ 2000 denomination banknotes into a Bank Account?

Deposit into Bank Accounts can be made without restriction, subject to compliance with the existing Know Your Customer (KYC) norms and other applicable statutory/regulatory requirements.

7. Is there an operational limit on the amount of ₹ 2000 denomination banknotes that can be exchanged?

Members of the public can exchange ₹ 2000 denomination banknotes up to a limit of ₹ 20,000, at a time.

8. Can ₹ 2000 banknotes be exchanged through Business Correspondents (BCs)?

Yes, exchange of ₹ 2000 banknotes can be done through BCs up to a limit of ₹ 4,000 per day for an Account holder.

9. From which date will the exchange facility be available?

Giving time to banks for preparatory arrangements, members of the public are requested to approach bank branches or ROs of RBI from May 23, 2023 to avail the exchange facility.

10. Is it necessary to be a customer of a bank, to exchange ₹ 2000 banknotes from its branches?

No. A non-Account holder can also exchange ₹ 2000 banknotes up to a limit of ₹ 20,000 at a time, at any bank branch.

11. What if someone needs more than ₹ 20,000 cash for business or other purposes?

Deposit into Accounts can be made without any restriction. ₹ 2000 banknotes can be deposited into Bank Accounts and cash requirements can be drawn thereafter, against these deposits.

12. Is there any fee to be paid, to avail the exchange facility?

No. The exchange facility will be provided free of cost.

13. Will there be special arrangements for senior citizens, persons with disabilities, etc. for exchange and deposit?

Banks have been instructed to make arrangements to reduce inconvenience for senior citizens, persons with disabilities, etc., seeking to exchange/deposit ₹ 2000 banknotes.

14. What will happen if one cannot deposit/exchange ₹ 2000 banknotes immediately?

To make the entire process smooth and convenient for the public, a period of over four months has been given for deposit and/or exchange of ₹ 2000 banknotes. Members of the public are therefore encouraged to avail this facility at their convenience, within the allotted time.

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

To redress grievances in case of service deficiency, the complainant/aggrieved customer may first approach the concerned bank. If the bank does not respond within <30> days of lodging the complaint or if complainant is not satisfied with the response/resolution given by the bank, the complainant can lodge another complaint under the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021 at the Complaint Management System portal of RBI (cms.rbi.org.in).

16. What is the provision for deposit/exchange of ₹ 2000 banknotes after September 30, 2023?

The current facility for deposit/exchange of ₹ 2000 banknotes at bank branches has been extended by RBI till October 07, 2023.

17. What will happen if one cannot deposit/exchange ₹ 2000 banknotes by October 07, 2023?

₹ 2000 banknotes can continue to be exchanged by individuals/entities at the 19 RBI Issue Offices up to a limit of ₹ 20,000 at a time. Individuals/Entities can also tender the ₹ 2000 banknotes at the 19 RBI Issue Offices for credit to their Bank Accounts in India, for any amount. Such exchange or credit will be subject to relevant RBI/Government Regulations, submission of valid identity documents and due diligence, as deemed fit by RBI.

18. Is it necessary to visit RBI in person for deposit/exchange of ₹ 2000 banknotes?

Individuals/Entities from within the country can send ₹ 2000 banknotes through India Post addressed to any of the 19 RBI Issue Offices, as per the procedure laid down by the Department of Posts, for credit to their Bank Accounts in India. Such credit will be subject to relevant RBI/Government Regulations, submission of valid identity documents and due diligence, as deemed fit by RBI.

19. What will be the last date for exchange of ₹ 2000 banknotes at RBI Issue Offices?

The facility for deposit/exchange of ₹ 2000 banknotes at the 19 RBI Issue Offices will be available until further advice.
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