The sudden decision made by the Reserve Bank of India (RBI) to withdraw Rs 2,000 currency notes from circulation starting September 30 has taken Indians by surprise. RBI governor Shaktikanta Das addressed the public’s concerns about this move in a press conference held on May 22, 2023. Here are the key points you need to know about the central bank’s decision:
1. What was the purpose of introducing Rs 2,000 currency notes?
During demonetization, the introduction of Rs 2,000 currency notes aimed to quickly replenish the money supply in the system. With the purpose now fulfilled, the decision to withdraw these notes was driven by the sufficient circulation of other denominations, as stated by the RBI governor. Additionally, the printing of these notes has been discontinued. The central bank will assess the number of notes returned to the banks and determine whether to extend the September 30 deadline accordingly.
2. What is the plan for individuals living abroad?
RBI governor assured that there is no need to rush to the banks as people have four months to exchange the notes. Regarding individuals living abroad, he expressed, “We expect most of the notes to come back by September 30. Let me assure you that we will be sensitive to the difficulties faced by people both in India and abroad. We will make every effort to address these challenges.”
3. What will happen to the legal tender status of Rs. 2000 banknotes?
The RBI has clearly stated that Rs. 2000 banknotes will retain their legal tender status.
4. Will Rs. 2000 banknotes still be valid for regular transactions?
Yes, the general public can continue using Rs. 2000 banknotes for regular transactions. These banknotes can be used for payments and received as a form of payment. However, it is advisable to deposit or exchange them by September 30, 2023.
5. Is there a limit on depositing Rs. 2000 banknotes into a bank account?
Rs. 2000 banknotes can be deposited in a bank account without any restrictions, subject to compliance with the existing Know Your Customer (KYC) norms and other applicable statutory/regulatory requirements.
6. How many Rs. 2000 banknotes can be exchanged at once?
Members of the public can exchange Rs. 2000 banknotes up to a limit of Rs. 20,000 at a time.
7. Can these notes be exchanged through Business Correspondents (BCs)?
Yes, these notes can be exchanged through Business Correspondents, but the limit is set at Rs. 4000 per day for an account holder.
8. Is it necessary to be a bank customer to exchange Rs. 2000 currency notes at bank branches?
No, even non-account holders can exchange ₹2000 banknotes up to a limit of Rs. 20,000 at a time at any bank branch.
9. Are there any special arrangements for senior citizens, persons with disabilities, etc., for exchange and deposit?
Banks have been instructed to make arrangements to minimize inconvenience for senior citizens, persons with disabilities, and other individuals coming to the bank for exchanging or depositing their notes.
1. Are there any mechanisms for grievance redressal or complaint registration?
In case of grievances or conflicts, the complainant or aggrieved customer should first approach the concerned bank. If the bank fails to respond within 30 days of complaint registration or if the complainant is unsatisfied with the response/resolution provided by the bank, they can lodge a complaint under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021 at the Complaint Management System portal of RBI (cms.rbi.org.in).
