RBI Extends Rs 2,000 Note Exchange Deadline Till October 7

This decision comes after the RBI announced the withdrawal of Rs 2,000 banknotes from circulation back on May 19, 2023. The initial deadline for the exchange was set for September 30, 2023.

"Rs 2000 banknotes shall continue to be legal tender," said the RBI.

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The Reserve Bank of India (RBI) has decided to extend the deadline for the exchange of Rs 2,000 denomination banknotes till October 7, 2023. This decision comes after the RBI announced the withdrawal of Rs 2,000 banknotes from circulation back on May 19, 2023. The initial deadline for the exchange was set for September 30, 2023.

However, RBI said that "based on a review, it has been decided to extend the current arrangement for deposit/exchange of Rs 2000 banknotes until October 07, 2023."

"Rs 2000 banknotes shall continue to be legal tender," said the RBI. 

The central banks also informed that out of the total value of Rs 3.56 lakh crore of Rs 2,000 banknotes in circulation as of May 19, Rs 3.42 lakh crore has been successfully returned to the banking system. This leaves only Rs 0.14 lakh crore still in circulation as of September 29, 2023, indicating that 96 per cent of the Rs 2,000 banknotes in circulation to date.

The RBI said the facility for deposit/exchange of Rs 2000 banknotes at the 19 RBI Issue Offices shall be available till further advice and it urged "Members of the public" to deposit/exchange the Rs 2000 banknotes "without any further delay."

What Happens After October 8, 2023

The RBI said starting from October 8, 2023, there will be a change in the procedure for depositing or exchanging Rs 2,000 banknotes:

• Bank branches will cease to accept Rs 2,000 banknotes for deposit or exchange.
• Individuals and entities will still have the option to exchange Rs 2,000 banknotes at the 19 Regional Offices (ROs) of the RBI, with a limit of Rs 20,000 at a time.
• Individuals and entities can also tender Rs 2,000 banknotes at the 19 RBI Issue Offices for crediting the amount to their bank accounts in India. Those within the country can send Rs 2,000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices, for credit to their bank accounts in India.
• Any exchange or credit will be subject to relevant RBI and Government regulations, with the submission of valid identity documents and due diligence as required by the RBI.
• Courts, law enforcement agencies, government departments, or any other public authority involved in investigation proceedings or enforcement may deposit or exchange Rs 2,000 banknotes at any of the 19 RBI Issue Offices without any specified limit.