Last week, the Reserve Bank of India (RBI) announced that it would withdraw ₹2000 notes from circulation. Apart from the 2016 demonetisation, the RBI has provided ample time for citizens to exchange their notes.
Social media platforms and messaging applications are generating a lot of misinformation about the withdrawal of the notes. In this article, we explain how you can exchange your ₹2000 notes.
Is it still possible to use ₹2000 notes?
It is unclear when the notes will lose their legal tender status, but the central bank has stated that they will remain legal tender until September 30, 2023.
In a report, it is reported that the government may remove the legal tender status around the end of the year to avoid the inconvenience that was caused during the demonetisation of 2016 when all 500 and 1,000 value notes were immediately no longer legal tender. If the legal tender status of these notes is extended beyond September, foreigners and country missions will have ample time to deposit high-value notes.
According to the report, a notification rescinding the legal tender status of the ₹2000 notes may be released after September 2023.
Exchange of ₹2000 notes
Beyond spending it, you can also get rid of 2000 notes in two ways.
Make a deposit into your account
In order to deposit 2000 notes, you will need to follow the existing know-your-customer (KYC) guidelines.
Any bank can exchange
There is a daily limit on the amount that can be exchanged, in order to avoid disruption of regular banking services. If you do not wish to deposit these notes, they can also be exchanged at any bank for smaller denomination notes.
Here’s how to exchange your ₹2000 note
The only thing you have to do is take these notes with you to any bank between May 23 and September 30, 2023, regardless of whether you have an account at that bank or not.
Could you please let me know if you need any ID or documents to exchange ₹2000 notes?
To clarify reports that you will need an identity proof to exchange your ₹2000 notes, the State Bank of India (SBI) clarified that you’re not required to carry an ID or show it at the bank.
One person can also make multiple exchanges at different banks on the same day, despite the ₹20,000 limit.
A PIL has been filed challenging the exchange without proof of identity
Ashwini Kumar Upadhyay, a BJP leader and advocate, has filed a Public Interest Litigation (PIL) in the Delhi High Court challenging the RBI and SBI’s notifications allowing people to exchange ₹2000 notes without presenting identity papers.
In his petition, Upadhyay calls the decision arbitrary and irrational, and contends that it violates Article 14 of the Constitution of India.
Additionally, Upadhyay has requested that RBI and SBI ensure that only ₹2,000 notes are deposited in their respective bank accounts to avoid the transfer of black money.