RBI extends last date for exchanging Rs 2,000 bank notes to Oct 7

RBI says 96% of the Rs 2,000 banknotes in circulation as on May 19, 2023, has since been returned

The Reserve Bank of India (RBI), on Saturday, announced that it has extended the deadline for exchanging and depositing Rs 2,000 notes to October 7, 2023.

"As the period specified for the withdrawal process has come to an end, and based on a review, it has been decided to extend the current arrangement for deposit / exchange of Rs 2,000 banknotes until October 07, 2023," the central bank said in a press release.

The bank stated that while the facility for deposit or exchange at commercial bank branches will cease after October 7, customers may still exchange these notes at 19 regional offices (ROs), subject to a limit of Rs 20,000 per transaction. 

It added, “Rs 2,000 banknotes shall continue to be legal tender.”

According to the data received from banks, of the total value of Rs 3.56 trillion of Rs 2,000 banknotes in circulation as on May 19, 2023, Rs 3.42 trillion has been received back leaving only Rs 0.14 trillion in circulation as at the close of business on September 29, 2023. Thus, 96 per cent of the Rs 2000 banknotes in circulation as on May 19, 2023 has since been returned, the RBI said.

The RBI had earlier fixed September 30, 2023, as the last date to deposit or exchange banknotes.

The RBI had in May decided to withdraw Rs 2,000 banknotes from circulation.