Withdrawal of Rs 2000 banknotes: Exchange process, limits and more; all your queries answered here

The announcement of withdrawal of Rs 2000 banknotes by the Reserve Bank of India (RBI) has left some sections of people confused even though the Apex bank claimed that the notes will continue to be legal tender.

It is pertinent to mention here that the RBI had earlier undertaken a similar withdrawal of notes from circulation in 2013-2014.

All Your Queries Are Answered Here:

Does the legal tender status of Rs 2000 banknotes remain?

Ans: Yes, Rs 2000 banknote will continue to maintain its legal tender status.

Can Rs 2000 banknotes be used for normal transactions?

Ans: Yes, people can continue to use Rs 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.

What should the public do with the Rs 2000 denomination banknotes held by them?

People may approach bank branches for deposit and/or exchange of Rs 2000 banknotes held by them.

The facility for deposit into accounts and exchange for Rs 2000 banknotes will be available at all banks until September 30, 2023.

The facility for exchange will be available also at the 19 Regional Offices (ROs) of RBI having Issue Departments1 until September 30, 2023.

Is there a limit on deposit of Rs 2000 banknotes into a bank account?

Ans: Deposit into bank accounts can be made without restrictions subject to compliance with extant Know Your Customer (KYC) norms and other applicable statutory/regulatory requirements.

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

Ans:  People can exchange Rs2000 banknotes upto a limit of Rs 20,000 at a time.

Can Rs 2000 banknotes be exchanged through Business Correspondents (BCs)?

Ans: Yes, exchange of Rs 2000 banknotes can be made through BCs upto a limit of Rs 4000 per day for an account holder.

Is it necessary to be a customer of the bank to exchange Rs 2000 banknotes from its branches?

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

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

Ans: Deposit into accounts can be made without restrictions. The Rs 2000 banknotes can be deposited into bank accounts and cash requirements can be drawn thereafter, against these deposits.

Is there any fee to be paid for the exchange facility?

And: No. The exchange facility shall be provided free of cost.