Planning to deposit or exchange Rs 2000 banknotes? Here’s what you must know

Are you still confused about the deposit and exchange the withdrawn currency? The simple answer is – it is easy to exchange and deposit one’s money. If you want to deposit, you must go the bank where you account is running. However, there is no such rule for the people who want to exchange the currency. They can go to any bank and get the exchange done as per the applicable RBI rules.

Under its Clean Note Policy, the Reserve Bank of India has decided to withdraw the Rs 2000 denomination banknotes from circulation. However, the Rs 2000 banknotes will continue to be legal tender. Banks have been instructed to discontinue the issue of Rs 2000 denomination banknotes with immediate effect and ATMs/Cash Recyclers may also be reconfigured accordingly.

You can avail the facility for deposit and exchange of Rs 2000 banknotes up to September 30, 2023.

Adhil Shetty, CEO, Bankbazaar.com, says, “According to the RBI, deposit of Rs 2000 banknotes into accounts can be made without restrictions and subject to compliance with extant Know Your Customer (KYC) norms and other applicable statutory requirements. The banks shall also be required to comply with Cash Transaction Reporting (CTR) and Suspicious Transaction Reporting (STR) requirements, where applicable.”

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Consumers still have a lot of confusion related to the exchange and deposit. You must remember that deposit and exchange can be done only at authorised banks, and you must not get the same replaced or exchanged through an individual, who is not an employee of the authorised bank or financial institution. It is important to answer the following questions so that there is more clarity amongst consumers.

Can you use Rs 2000 banknote for transactions?

According to the RBI guidelines, you can use Rs 2000 banknotes for transactions, and also receive them in payment. However, you must deposit or exchange these banknotes on or before September 30, 2023.

What should you do with the Rs 2000 denomination banknotes?

You can approach the nearby branches of any bank for depositing or exchanging of Rs 2000 banknotes. The facility will be available at all banks until September 30, 2023. The facility for exchange will be available also at the 19 Regional Offices (ROs) of RBI having Issue Departments until September 30, 2023.

Is there a limit on deposit of Rs 2000 banknotes into a bank account?

You can deposit into bank accounts without restrictions subject to compliance of Know Your Customer (KYC) norms and other regulatory requirements.

How much can you exchange?

You must note that the exchange is free of cost. One can exchange Rs 2000 banknotes up to a limit of Rs 20,000/- at a time. Suppose you have Rs 60,000, you can exchange only Rs 20,000 in a single day.

Can only a customer of the bank exchange Rs 2000 banknotes?

There is no such restriction. A non-account holder can also exchange Rs 2000 banknotes up to a limit of Rs 20,000/- at a time.

These tips will help you exchange your Rs 2000 banknotes hassle-free, and you will be able to avoid any suspicious financial activity by unauthorised players. Also keep in mind, you must avoid delaying the exchange of your Rs 2000 banknotes as at the last minute you might have to experience more crowd in banks.