RBI Extends Target Date For Exchange Of Rs 2,000 Notes To October 7

The Reserve Bank of India (RBI) has extended the deadline for the exchange of Rs 2,000 banknotes until October 7, from the initial deadline of October 1. This extension comes after reviewing the withdrawal process.

In a statement, the RBI explained that, based on data received from banks, out of the total value of Rs 3.56 lakh crore worth of Rs 2,000 banknotes in circulation as of May 19, Rs 3.42 lakh crore has already been received. This indicates that only Rs 0.14 lakh crore worth of Rs 2,000 notes remain in circulation as of September 29, which is approximately 4 percent of the total.

The decision to discontinue the Rs 2,000 denomination banknotes was initially announced by the RBI on May 19, with the withdrawal scheduled to begin on October 1. However, these notes would continue to be legal tender until the exchange deadline, despite the RBI advising banks to stop issuing them immediately.

The introduction of the Rs 2,000 banknote took place in November 2016, primarily to meet the urgent currency requirements of the economy following the demonetization exercise, which led to the discontinuation of the Rs 500 and Rs 1,000 banknotes.

With this extension, individuals who still possess Rs 2,000 banknotes have additional time to exchange them for other denominations or deposit them in their bank accounts.

Also Read: RBI Clarifies Authenticity and Value of Banknotes Featuring Star (*) Symbol