Rs 2000 Note Exchange: RBI Says Banks To Start Accepting Currency Notes Starting May 23

The RBI advised banks to provide shade from the sun and water to customers waiting to exchange or deposit Rs 2,000 notes

The Reserve Bank of India (RBI) on Monday issued a statement saying that the facility of exchange of Rs 2000 banknotes across the counter shall be provided to the public in the usual manner, that is, as was being provided earlier.

The exchange of the Rs 2000 currency notes into banknotes of other denominations can be made up to a limit of Rs 20,000 at a time at any bank starting on Tuesday (May 23).

The RBI advised banks to provide shade from the sun and water to customers waiting to exchange or deposit Rs 2,000 notes. It can be noted that during the note ban in 2016, there were allegations of customers dying while waiting in queues to exchange bank notes.

The regulator asked banks to provide the note exchange facility across the counter to the public in the usual manner, that is, as was being provided earlier and also asked banks to maintain daily data on deposit and exchange of Rs 2,000 notes.

Following the Friday's announcement of withdrawing Rs 2,000 notes, the notes continue to be legal tender unlike demonetisation exercise, there were concerns about customers facing inconvenience, especially given the summer being at peak. "Banks are advised to provide appropriate infrastructure at the branches such as shaded waiting space, drinking water facilities, etc. considering the summer season," RBI said in a notification on Monday.

The central bank on Friday advised all banks to stop issuing Rs 2000 denomination banknotes with immediate effect. However, the banknotes in Rs 2000 denomination will continue to be legal tender.

In a statement, the RBI on Friday said, "The Rs 2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time. The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, printing of Rs 2000 banknotes was stopped in 2018-19. In pursuance of the 'Clean Note Policy' of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation. The banknotes in Rs 2000 denomination will continue to be legal tender.”