The Reserve Bank of India (RBI) on May 19, 2023, issued a notification regarding the withdrawal of the 2000-denomination banknotes from circulation.
These instructions shall be effective until September 30, 2023.
The following instructions have been stated namely: -
A. Handling of existing stock and receipts
(i) All banks shall discontinue the issue of ₹2000 denomination banknotes with immediate effect. ATMs/Cash Recyclers may also be reconfigured accordingly.
(ii) Banks holding Currency Chests (CCs) shall ensure that no withdrawal of ₹2000 denomination is allowed from the CCs. All balances held in the CCs shall be classified as unfit and kept ready for dispatch to respective RBI offices.
(iii) All banknotes in this denomination received by the banks shall be sorted immediately through Note Sorting Machines (NSMs) for accuracy and genuineness and deposited in the currency chests under the Linkage Scheme or kept ready for dispatch to the nearest Issue Office of RBI.
(iv) The instructions contained in our Master Direction dated April 03, 2023, on detection, reporting, and monitoring of counterfeit notes shall be meticulously followed.
B. Facility for Deposit and Exchange
(v) The facility for deposit and/or exchange of ₹2000 banknotes shall be available for members of the public up to September 30, 2023.
(vi) Deposit of ₹2000 banknotes into accounts maintained with all banks can be made in the usual manner, that is, without restrictions and subject to compliance with extant Know Your Customer (KYC) norms and other applicable Statutory requirements. The banks shall also be required to comply with Cash Transaction Reporting (CTR) and Suspicious Transaction Reporting (STR) requirements, where applicable.
(vii) The facility for the exchange of ₹2000 banknotes shall be provided to all members of the public by all banks through their branches.
(viii)With a view to minimizing inconvenience to the public, ensuring operational convenience, and avoiding disruption of the regular activities of bank branches, all banks may exchange ₹2000 banknotes up to a limit of ₹20,000/- at a time.
(ix) Business Correspondents (BCs) may also be allowed to exchange ₹2000 banknotes up to a limit of ₹4000/- per day for an account holder. For this purpose, banks may, at their discretion, enhance the cash holding limits of BCs.
(x) To give time to the banks for preparatory arrangements, members of the public have been requested to approach the banks/branches from May 23, 2023, for availing of an exchange facility. Deposit of ₹2000 banknotes may continue as per the normal banking practice.
(xi) For providing deposit/exchange facilities to people residing in remote/ unbanked areas, banks may consider using mobile vans, if necessary.
(xii) While crediting the value of ₹2000 notes to Jan Dhan Yojna Accounts / Basic Savings Bank Deposit (BSBD) Accounts, the usual limits will apply mutatis mutandis.
(xiii) The banks shall to the extent feasible make special arrangements to reduce inconvenience to the senior citizens, persons with disabilities, and women seeking to exchange/deposit ₹2000 notes.
C. Replenishment of Stock of Other Denominations for Exchange
(xiv)Branches / CCs should estimate their cash requirement and obtain banknotes of other denominations from the linked / nearby currency chest / RBI well in time.
(xv)CC holding branches shall extend required support to the linked / non-linked branches in accepting ₹2000 notes and distribution of banknotes in other denominations. In case of any difficulty in obtaining cash, the banks may contact the concerned Issue Office of RBI.
D. Dissemination of Information
(xvi)The banknotes in ₹2000 denomination will continue to be legal tender.
(xvii) A document on Frequently Asked Questions (FAQs) in the matter has been prepared and given in the Annex. A copy of the same may be provided to the staff manning the exchange counters as well as displayed in the banking hall, ATM kiosks, etc.
(xviii) A Press Release informing the public of the exercise and soliciting their cooperation is being issued separately. A copy of the same is enclosed for ready reference which may also be displayed in the banking hall, ATM kiosks, etc.
(xix)Banks may also consider advising their customers suitably in the matter.
[Notification No. RBI/2023-24/32 DCM(Plg) No.S-236/10.27.00/2023-24]
