Are 2000 Rupee Notes Banned in India?? How to Exchange, Exchange Rules & Limit

Are Rs.2000 Notes Banned in India?

No, Rs. 2000 notes are not completely banned in India but have been removed from circulation starting 19th May 2023. The Rs.2000 notes will remain legal tender and could be used for transactions till 30th September, 20023 (unless extended).

Legal tender refers to any document that is recognized by the law as a legally accepted instrument for the settlement of private and public debts.

Even though Rs.2000 notes have been discontinued, unlike the demonetization of Rs.500 and Rs.1000 notes in 2016, these notes have not vanished overnight and can be used for transactions till 30th September 2023.

Why has RBI Withdrawn Rs.2000 Notes from Circulation?

Following the unprecedented move of the RBI, people are wondering why the Rs.2000 note was discontinued. Here are a few reasons behind such a bold decision -

• Keeping a Check on Black Money One of the main motives behind the ban on Rs.2000 notes is curbing the black money and keeping a check on the evasion of taxes. Black money refers to the money that is kept unaccounted for to evade taxes. Discontinuing the Rs.2000 note, popular among black money hoarders, is likely to help curb the hoarding of unaccounted cash.
• To Tackle Counterfeit Currency Rs.2000 is a currency note of the highest denomination, making it highly susceptible and vulnerable to counterfeiting. Counterfeiting of currency notes can be misused in different ways, threatening the country’s integrity.
• Disrupting the Illegal Activities Counterfeited Rs.2000 notes were the major source of funding for terrorists, money launderers, and corruption. By banning the circulation of Rs.2000 notes, the government hopes to disrupt such activities and operations.
• Promoting a Cashless Economy For the past years, the government is focussing a lot on making India a cashless economy. The Rs.2000 note ban is followed by the government’s objective to digitize transactions in the country.
• Clean Note Policy The clean note policy is RBIs initiative to promote the circulation of high-quality and clean banknotes. Under this policy, RBI withdraws unfit and damaged notes from circulation.

What is the last date to deposit/exchange Rs. 2000 note?

The last date for exchanging Rs.2000 notes is 30th September 2023, starting from May 23, 2023.

What are the Rules for the Exchange/Deposit of Rs.2000 Notes?

After making the announcement, the RBI established certain rules for depositing/exchanging Rs.2000 notes. Here are the rules -

• Period of Exchange: The government has announced a window till 30th September 2023, during which you can deposit or exchange your Rs.2000 notes at the designated bank branches and post offices. This exchange period is provided to make sure that the process doesn’t become endless.
• Requirement for Identification and Documentation: Individuals must submit relevant identification proofs while exchanging the Rs.2000 notes. Valid Id proof includes Voter Id, PAN Card, Aadhaar Card, and address proof. This ensures transparency in processes and prevents misuse.
• Cash Deposit: If the total amount of Rs.2000 notes with an individual exceeds the prescribed limit for exchange, he has to deposit the balance amount in a bank account. Such money will go through scrutiny and verification.

What is the Limitation on the exchange of Rs.2000 Notes?

The Reserve Bank of India (RBI) has limited the amount you can exchange. The Rs.2000 note holders can exchange/deposit a maximum of 10 Rs.2000 notes at a time. In other words, an individual cannot exchange more than Rs.20,000 at a time.

However, the limitations, rules, and requirements might vary from bank to bank. Therefore, check with your bank before exchanging your notes.

How to deposit or exchange Rs.2000 Note at a bank?

Here are the steps to follow if you want to exchange/ deposit Rs.2000 note -

• Step 1. Go to any nearest bank branch, whether you have an account there or not.
• Step 2. Carry valid Id proof such as Aadhaar, PAN, Passport, Voter Id, driving license, and your bank details.
• Step 3. Get a deposit slip from the bank and fill it in with the necessary details like name, denomination, number of notes, and bank account number. The RBI has set a limit of exchanging a maximum of 10 notes at a time or a limit of Rs 20000/-.
• Step 4. Submit the deposit slip and the notes you wish to deposit to the bank teller.
• Step 5. After depositing the money, you will receive an acknowledgment slip from the bank confirming the deposit of Rs.2000 notes.

Please Note:- This varies from bank to bank.

If you have not exchanged your Rs.2000 notes yet, hurry up; the deadline is 30th September 2023.