What Happens If You Have Rs 2000 Currency Note After 30 September?
The deadline set by the RBI to deposit or exchange Rs 2,000 currency notes ends on 30 September 2023, this Saturday. If one still has Rs 2,000 currency notes and haven't yet deposited or exchanged them, one needs to ensure it is done well in time.
It is worth noting that the Reserve Bank of India (RBI) has not revoked the legal tender status of the Rs 2,000 note. This means it will remain a valid currency even after the deadline.
During a press interaction, the RBI governor stated, "I can't give you a speculative answer as to what will happen after 30 September. We have not said that the legal tender status (of the Rs 2,000 notes) will continue only up to 30 September." The deposit deadline was set to ensure the announcement is taken seriously. "Unless you give a particular time frame, the process won't reach a stage of finality," he added. This suggests that Rs 2000 notes will continue to be considered 'legal tender'.
Will the deadline be extended by RBI?
As per an RBI press release dated 1 September 2023, "93 per cent of the Rs 2000 banknotes in circulation as of 19 May 2023, have since been returned." As most of the notes have been returned to the banking system, the likelihood of an extension for depositing and exchanging Rs 2000 notes is less.
Possible scenarios after 30 September 2023
However, since the legal tender status of the Rs 2000 note continues, the question arises regarding possible options for individuals with Rs 2000 notes that haven't been deposited or exchanged before the deadline. 'Legal tender' status implies that the RBI would need to provide a way to redeem the monetary value of these notes. Consequently, one of the following scenarios may occur post 30 September:
• No transactions, but deposits in bank accounts may still be allowed
It's possible that RBI prohibits the use of Rs 2000 notes for transactions but permits individuals to deposit them in their KYC-compliant bank accounts. Many shopkeepers and businesses have already stopped accepting Rs 2,000 notes for transactions after the RBI announced their withdrawal. As the notes remain legal tender, the RBI may allow individuals to deposit Rs 2000 notes in KYC-compliant bank accounts even after 30 September.
• Exchange facility may be available, but only at RBI
The RBI may permit the exchange of Rs 2000 notes solely at its own offices upon presentation of ID and address proofs. While withdrawing Rs 2000 notes from circulation, the RBI allowed exchange with a limit of Rs 20,000 at a time from any bank until 30 September. Exchange facilities are set up at 19 regional offices of RBI as well. Certain banks have exchanged Rs 2000 notes without asking for ID proof, while others have done so only upon submission of ID proof. However, the RBI may insist on KYC compliance for exchanging Rs 2000 notes at its offices after 30 September to maintain proper records.
Previous Instances
During the withdrawal of pre-2005 notes, the RBI offered exchange facilities at specified RBI offices. However, this did not imply that banks could not accept deposits of pre-2005 banknotes for crediting to customers' accounts, as per RBI FAQs on Indian currency on its website.
