Latest Updates on Rs 2000 Denomination Banknotes Withdrawal : SB Order 11/2023 Addendum
In a recent development, the Reserve Bank of India (RBI) has taken significant steps regarding the withdrawal of Rs 2000 denomination banknotes from circulation. Following their 'Clean Note Policy,' the RBI initially announced the withdrawal in a press release on May 19, 2023. As of September 29, 2023, 96% of the Rs 2000 banknotes in circulation have been returned, amounting to Rs 3.42 lakh crore out of Rs 3.56 lakh crore. To facilitate the remaining transactions and avoid inconvenience to the public, the RBI has extended the deposit/exchange facility until October 07, 2023. Individuals and entities can continue to exchange Rs 2000 banknotes at the 19 RBI Issue Offices up to a limit of Rs 20,000 at a time.
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| SB Order 11/2023 Addendum |
Additionally, these banknotes can be tendered at these offices for credit to bank accounts in India, subject to relevant regulations and proper documentation. After October 07, 2023, the exchange facility at bank branches will cease, but Rs 2000 banknotes will remain legal tender. The RBI has also provided detailed Frequently Asked Questions (FAQs) on their website for public information. It is advised that members of the public take necessary actions regarding the deposit/exchange of these banknotes without further delay.
SB Order 11/2023 Addendum: Rs 2000 Denomination Banknotes - Withdrawal from Circulation — Regarding.
SB Order No. 11/2023 No. FS-10/21/2023-FS-DOP Government of India Ministry of Communications Department of Posts (F.S. Division) Dak Bhawan, New Delhi — 110001 Dated: 03.10.2023 Addendum : To, All Head of Circles / Regions
Reserve Bank of India (RBI) in Press Release No. 2023-2024/257 dated 19.05.2023 in pursuance of its ‘Clean Note Policy’, decided to withdraw the Rs 2000 denomination banknotes from Circulation.
2. RBI in Press Release No. 2023-2024/257 dated 30.09.2023 has decided to extend the current arrangement for deposit / exchange of ¥ 2000 banknotes till 07.10.2023. Accordingly, the instructions issued vide SB Order No. 11/2023 dated 22.05.2023 should be followed by all the post offices and other units / offices handling the cash till 07.10.2023.
3. A copy of the Press Release dated 30.09.2023 issued by RBI is enclosed for ready reference which may be displayed in the counter hall, ATM kiosks and other public access areas in the post offices.
4. Circles / Regions are requested to issue suitable instructions to the offices / units and advise them to extend all co-operation to members of the public to avoid any inconvenience to the public.
5. This may be circulated to all the Offices for information and necessary actions.
6. This is issued with the approval of competent authority.
Yours faithfully Encl: As above.
(TC VIJAYAN) Asst. Director (SB-I)
September 30, 2023 Rs 2000 Denomination Banknotes — Withdrawal from Circulation — Review
The Reserve Bank of India (RBI) had announced the withdrawal of Rs 2000 banknotes from circulation vide Press Release 2023-2024/257 dated May 19, 2023. In order to complete the exercise in a time bound manner and to provide adequate time to members of the public, the banks were advised to provide deposit and / or exchange facility for Rs 2000 banknotes until September 30, 2023. The exchange facility was also made available at the 19 Regional Offices (ROs) of RBI having Issue Departments (RBI Issue Offices)
1. The RBI has been keeping members of the public informed about the status of the withdrawal exercise through monthly Press Releases.
2. According to the data received from banks, of the total value of Rs 3.56 lakh crore of 2000 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 the Rs 2000 banknotes in circulation as on May 19, 2023 has since been returned.
3. 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 Rs2000 banknotes until October 07, 2023. With effect from October 08, 2023, the procedure for deposit / exchange of Rs 2000 banknotes shall be as under:
a) The deposit / exchange at bank branches shall be stopped.
b) Rs 2000 banknotes can continue to be exchanged by individuals / entities at the 19 RBI Issue Offices up to a limit of Rs 20,000/- at a time.
c) Individuals / Entities can tender Rs 2000 banknotes at the 19 RBI Issue Offices for credit to their bank accounts in India for any amount.
d) Individuals / Entities from within the country can also send Rs 2000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices for credit to their bank accounts in India.
e) Such exchange or credit shall be subject to relevant RBI / Government regulations, submission of valid identity documents and due diligence as deemed fit by RBI.
f) Courts, law enforcement agencies, government departments or any other public authority involved in investigation proceedings or enforcement, may, as and when required, deposit / exchange Rs 2000 banknotes at any of the 19 RBI Issue Offices without any limit.
4. Rs 2000 banknotes shall continue to be legal tender.
5. The above facility for deposit / exchange of Rs 2000 banknotes at the 19 RBI Issue Offices shall be available till further advice.
6. Members of the public are advised to deposit / exchange the Rs 2000 banknotes without any further delay.
7. An updated document on Frequently Asked Questions (FAQs) in the matter has been hosted on the RBI website for information and convenience of the public.
In conclusion, the Reserve Bank of India's recent decision to withdraw Rs 2000 denomination banknotes from circulation signifies a strategic move toward a cleaner financial system. With 96% of these notes already returned, the RBI has extended the deposit/exchange facility until October 07, 2023, easing the transition for individuals and entities. It's crucial for the public to promptly adhere to the guidelines outlined by the RBI, ensuring a smooth process while these banknotes continue to remain legal tender. The detailed FAQs provided by the RBI serve as a valuable resource, offering clarity to individuals and organizations involved in the exchange process. Overall, this initiative emphasizes the importance of compliance and cooperation from all stakeholders to achieve a seamless transition in the Indian financial landscape.