Banks across the country will start accepting Rs 2,000 notes for exchange from today. The Reserve Bank of India (RBI) announced the withdrawal of Rs 2,000 notes from circulation on May 19, giving banks four days to prepare. The Rs 2,000 note was issued in 2016 after the central government announced demonetisation of old Rs 500 and Rs 1,000 notes. While the government introduced the Rs 500 note in a new design, the Rs 1,000 note was not reintroduced. While there was speculation that the Rs 2,000 note would also be demonetised, the RBI has announced the withdrawal of only currency notes from market circulation. So, if you too have Rs 2,000 notes and want to exchange them, here are 10 points you should know before visiting your bank:
1. Do not rush in banks. There is no need to panic. Though the RBI has set a deadline of September 30 for people to exchange their notes in tranches of 10 notes, the central bank has said that the Rs 2,000 note will continue to be legal tender. This means that the note can be used for commercial purposes even after September 30. “It will continue as legal tender. We will wait and see how many notes are coming. I cannot give any guess about what will happen after September 30.” RBI Governor Shaktikanta Das.
2. No limit on deposits. Yes, you read it right. While you can exchange only 10 notes at a time, there is no limit to deposit notes. However, in case of transactions involving large deposits, you will need to meet KYC guidelines.
3. No documents are required for deposits below Rs.50,000. Das said, “We have not come up with any additional process. You should know that there is an Income Tax rule, if you deposit cash above Rs.50,000 then you have to show your PAN. Hence the existing rules will apply.
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 to a limit of Rs 20,000 at a time will be given without any demand slip.
5. Steps taken to ease the exchange. The Reserve Bank of India has also advised banks to arrange sheds to protect the people coming to exchange or deposit notes from the sun. Along with this, drinking water should also be arranged for the people in the queue. Banks have been asked to provide the facility of exchanging notes over the counter in the usual manner.
6. RBI Governor Shaktikanta Das said that the withdrawal of Rs 2,000 notes from circulation will have a very limited impact on the economy as these notes account for only 10.8 per cent of the total currency in circulation. Most of the Rs 2,000 notes are expected to be back in the banking system by September 30.
7. Sufficient notes of different denominations are available with the banks. RBI has said that not only with RBI, but also in currency chests operated by banks, there is sufficient amount of printed notes available. RBI governor Das said, “So there is enough stock available and there is no reason to worry. We have more than enough stock.”
8. There is a possibility of relaxation for those living abroad. The RBI said it is sensitive to the difficulties that may be faced by those who are traveling abroad for a long period of time or staying abroad on work visas. “We will try to remove the difficulties of the people and complete the entire process in a smooth manner,” he added. ,
9. RBI stopped printing Rs 2,000 notes in 2019. Yes, you read that right. The Reserve Bank of India had not printed any notes of Rs 2,000 denomination since April 2019.
10. Clean Note Policy. RBI said that the demonetisation of Rs 2,000 notes is part of its clean note policy. The objective of the Clean Note Policy is to provide good quality currency notes and coins with better security features to the public.