Can you still use Rs 2,000 notes after September 30?


The deadline for returning or exchanging Rs 2,000 banknotes is September 30. Will they, however, be legal tender after the deadline?

Rs 2,000
 The last date to deposit/exchange Rs 2,000 is September 30. (Photo: istock)

 

If you have Rs 2,000 currency notes, you may be wondering what will happen to them after September 30, the last day to deposit/exchange them at banks.

Given that banks will be closed on September 28 due to a vacation, there isn’t much time left to return Rs 2,000 notes. While no formal extension has been announced, the majority of Rs 2,000 notes in circulation have already been returned to banks.

The Reserve Bank of India said on September 1 that “the total value of Rs 2,000 banknotes received back from circulation is Rs 3.32 lakh crore up to August 31, 2023.”

Furthermore, only Rs 0.24 lakh crore worth of Rs 2,000 banknotes remained in circulation as of August 31, 2023.

This indicates that by May 19, 2023, 93 percent of the Rs 2,000 notes in circulation had already been returned through swaps or account deposits.

More deposits are expected to have been made in September, significantly lowering the amount in circulation. The RBI is likely to publish an update on October 1, which may clarify the fate of the remaining Rs 2,000 notes in circulation.

Can you still use Rs 2,000 notes after September 30?

While the RBI has not formally declared these notes worthless after the deadline, it is evident that the central bank plans to phase them out as part of its ‘clean note strategy’.

The RBI stated that the future status of Rs 2,000 notes would be determined by the amount deposited in banks.

With almost 90% of these notes having returned, the RBI is likely to set a date when these high-value notes will no longer be considered legal tender.

In simple words, the notes’ value may not depreciate immediately, but an official announcement from the RBI is awaited.

So, how does one go about depositing or exchanging Rs 2,000 notes? Returning them is very easy.

Individuals may deposit these notes at their respective banks without restriction, however usual Know Your Customer (KYC) rules and other legal deposit regulations remain in effect.

Deposit limits apply to persons who use Basic Savings Bank Deposit (BSBD) or Jan Dhan accounts. If you want to deposit a large amount of Rs 2000 notes into these accounts, you must stick to the limits.

Furthermore, Rule 114B of the Income Tax Rules requires persons to disclose their Permanent Account Number (PAN) when making cash deposits of more than Rs 50,000 at a bank or post office in a single day.

You can also swap Rs 2,000 notes at any of the RBI’s 19 Regional Offices (ROs) or any nearby bank branch until September 30. According to the RBI’s standards, these transactions should take place without the need for a request slip or ID proof.

However, because some public sector banks may have various procedures in place, it’s best to have an ID proof on hand when exchanging these notes for a smooth transaction.

Also Read: 5 Changes going to take place from 1st October.


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