RBI Extends Deadline For Exchange Of Rs 2,000 Currency Notes To October 7

The Reserve Bank of India (RBI) announced today that the deadline to exchange notes of Rs 2,000 has been extended to October 7. According to the RBI, the 2,000 note will still be valid even after the exchange deadline has passed. Earlier today was the deadline.

The biggest denomination currency note, the Rs 2,000, was withdrawn from circulation this year on May 19 by the Reserve Bank of India, which also stated that the notes will remain legal tender. There was a cap of Rs 20,000 at a time and it had said that current notes could be deposited or exchanged in banks until September 30.

RBI on X platform Tweeted, "₹2000 Denomination Banknotes - Withdrawal from Circulation - Review"

"As the period specified for the withdrawal process has come to an end, and based on a review, it has been decided to extend the current arrangement for deposit / exchange of ₹2000 banknotes until October 07, 2023. With effect from October 08, 2023," RBI said

"According to the data received from banks, of the total value of ₹3.56 lakh crore of ₹2000 banknotes in circulation as on May 19, 2023, ₹3.42 lakh crore has been received back leaving only ₹0.14 lakh crore in circulation as at the close of business on September 29, 2023. Thus, 96% of the ₹2000 banknotes in circulation as on May 19, 2023 has since been returned," RBI statement added.

The Rs 2,000 denomination banknotes were introduced on November 16, primarily to address the economy's currency requirements in a cost-effective manner following the demonetization of the Rs 500 and Rs 1000 banknotes.