The Reserve Bank of India (RBI) on Friday said that it will withdraw the Rs 2,000 denomination banknote from circulation but it will continue as legal tender. The notes will be withdrawn as a part of RBI's clean note policy.
All banks shall provide deposit and/or exchange facilities for 2,000 banknotes until September 30, 2023. The facility for the exchange of these banknotes up to the limit of Rs 20,000 at a time shall also be provided at the 19 Regional Offices of RBI having Issue Departments, from May 23.
There is a limit of ₹20,000 on the amount of ₹2,000 notes that can be exchanged for a lower denomination at one time.
It is advisable to change the notes by September 30, 2023, though Rs 2,000 notes will be used in transactions and payments.
Rs 2,000 notes can be exchanged for a lower denomination at no extra charge.
According to reports, special arrangements will be made by banks so that senior citizens, persons with disabilities, etc., who wish to exchange or deposit ₹2,000 notes, can do so with minimal trouble.
Know Your Customer (KYC) norms and other statutory requirements will be applicable when depositing the scrapped ₹2,000 notes into your bank accounts.