Rs 2,000 Note Exchange Starts Today; 10 Big Points To Know Before Rushing To Banks

Banks across India will start accepting Rs 2,000 notes for exchange from today. The Reserve Bank of India (RBI) had announced to withdraw the Rs 2,000 note from circulation on May 19, giving the bank four days to prepare for the same. The Rs 2,000 notes were issued in 2016 after the Central government announced the demonetisation of old Rs 500 and Rs 1,000 currency notes. While the government introduced the Rs 500 note in a new design, the Rs 1,000 note was not reintroduced. While there were speculations that the Rs 2,000 note will also be demonetised, the RBI has announced only the withdrawal of the currency notes from market circulation. So, if you also have Rs 2,000 notes and you want to get them exchanged, here are 10 points you should know before rushing to your bank:

1. Don't rush to the banks. There is no need to panic. Though the RBI has set a deadline of September 30 for people to get their notes exchanged in a tranche of 10 notes, the central bank has maintained that the Rs 2,000 currency continues to be the legal tender. This means, the note can be used for commercial purposes even after September 30. "It will continue as legal tender. We will wait how many notes are coming. I cannot give a speculative answer about what will happen post-September 30," said RBI Governor Shaktikanta Das.

2. No limit on deposits. Yes, you read it right. While you can exchange only 10 notes at once, there is no limit on the deposit of the notes. However, you will have to fulfil KYC guidelines in case of large deposit transactions.

3. No documents are needed for deposits below Rs 50,000. "We have not come out with an additional procedure. You must be aware that there's an income tax rule if you deposit cash above Rs 50,000 then you have to produce your PAN. So existing rules will apply," said Das.

4. No requisition slip for transactions up to 10 currency notes. State Bank of India has informed that the facility of exchange of Rs 2,000 notes by the public up to a limit of Rs 20,000 at a time will be allowed without obtaining any requisition slip.

5. Steps were taken to make exchange easy. The Reserve Bank of India has also advised the banks to arrange sheds to protect the people coming to exchange or deposit notes from sunlight. Along with this, drinking water should also be arranged for the people in the queue. Banks have been asked to make note exchange facilities available over the counter in the normal way.

6. RBI Governor Shaktikanta Das said that the withdrawal of Rs 2,000 notes from circulation would have a very limited effect on the economy as these notes constitute only 10.8 per cent of the total currency in circulation. Most of the Rs 2,000 notes are expected to be returned to the banking system by 30 September. 

7. Adequate notes of different denominations are available with banks. The RBI has said that there is more than adequate quantity of printed notes available in the system not just with the RBI, but also at the currency chests which are operated by the banks. "So there is adequate stock available and there is no reason to worry whatsoever. We have more than sufficient stocks," said RBI Governor Das.

8. Relaxations are likely for those staying abroad. The RBI said that it is sensitive to the difficulties which may be faced by people who are on long foreign visits or living abroad on work visas. "It will be our endeavour to address the difficulties of the people and to complete the entire process in a smooth manner," he said, hinting that those having legitimate reasons for not getting the currency notes exchanged may get special exemptions, post-September 30. 

9. RBI had stopped printing Rs 2,000 notes in 2019. Yes, you read it right. The Reserve Bank of India had not printed any Rs 2,000 denomination currency note since April 2019.

10. Clean Note Policy. The RBI said that the withdrawal of Rs 2,000 currency notes is part of its clean note policy. The Clean Note Policy aims at providing the public with good-quality currency notes and coins with better security features.