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Deadline to deposit Rs 2,000 notes extended to 7 October

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The last date to exchange Rs 2,000 denomination notes has been extended to October 7, the Reserve Bank of India said on Saturday.

In May, the central bank announced the withdrawal of Rs 2,000 notes from circulation, citing evidence that the denomination was not commonly used for transactions. It clarified that the denomination would remain legal tender but urged people to exchange them at banks or deposit them into their accounts. The deadline for this action was set for September 30.

The RBI said that banks will stop accepting the Rs 2,000 notes from 8 October but the denomination can be exchanged at the 19 Reserve Bank regional offices after the deadline.

“Of the total value of Rs 3.56 lakh crore of Rs 2,000 banknotes in circulation as on May 19, 2023, Rs 3.42 lakh crore has been received back leaving only Rs 0.14 lakh crore in circulation as at the close of business on September 29, 2023; thus, 96% of Rs 2000 banknotes in circulation as on May 19, 2023 has since been returned,” it added.

The Rs 2,000 notes were issued after the November 2016 decision of demonetisation when Rs 500 and Rs 1,000 denominations were abruptly withdrawn in what the government claimed was a move to fight corruption. The demonetisation was much criticised by experts and Opposition parties.

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