Still holding Rs 2,000 notes? Here's how to exchange or deposit them

New Delhi, Dec 10, 2024

98.08% of Rs 2,000 notes have been returned, but the remaining ones are still legal tender. Here's how to manage them before the window closes

With the Reserve Bank of India (RBI) continuing its withdrawal of Rs 2,000 notes, there’s still time for those holding these high-denomination banknotes to act. The RBI has revealed that 98.08% of Rs 2,000 notes in circulation have been returned. However, the remaining notes are still legal tender. Here’s what you need to know about depositing, exchanging, and the current status of these notes.

What’s happening with Rs 2,000 notes?

In May 2023, the RBI announced its decision to withdraw Rs 2,000 notes from circulation, citing a reduced need for high-denomination currency. These notes were first introduced in November 2016 after the demonetisation of Rs 500 and Rs 1,000 notes.

As of November 29, 2024, the total value of Rs 2,000 notes in circulation has dropped to Rs 6,839 crore, down from Rs 3.56 trillion in May 2023. Despite this significant decline, Rs 2,000 notes are still recognised as legal tender, meaning they can be used for transactions until further notice.

How can you deposit or exchange Rs 2,000 notes?

If you still have Rs 2,000 banknotes, there are specific options for depositing or exchanging them:

• Before October 7, 2023: Banks across India accepted Rs 2,000 notes for deposit or exchange.

• From October 9, 2023, onwards: This facility is now limited to 19 RBI Issue Offices located in major cities such as Ahmedabad, Bengaluru, Mumbai, New Delhi, and Patna. Individuals and entities can deposit Rs 2,000 notes directly into their bank accounts at these offices.

The 19 RBI Issue Offices are located in:

• Ahmedabad

• Bengaluru

• Belapur

• Bhopal

• Bhubaneswar

• Chandigarh

• Chennai

• Guwahati

• Hyderabad

• Jaipur

• Jammu

• Kanpur

• Kolkata

• Lucknow

• Mumbai

• Nagpur

• New Delhi

• Patna

• Thiruvananthapuram

• Through India Post: You can also send Rs 2,000 notes through India Post. These notes, posted from any post office in India to an RBI Issue Office, will be credited to your bank account.

What happens after the withdrawal deadline?

While banks no longer accept Rs 2,000 notes for deposit or exchange, they remain legal tender. Businesses and individuals can still use them for transactions. However, as fewer notes remain in circulation, they may become harder to use in everyday exchanges.

The RBI has not announced a definitive deadline for when Rs 2,000 notes will cease to be legal tender. Their gradual withdrawal aligns with the government’s efforts to promote digital payments and reduce cash dependency.

(With agency inputs)

[The Business Standard]