RBI announced on Saturday that the deadline to deposit or exchange Rs 2000 notes has been extended to October 7. As per the previous notification, September 30 was the last date to exchange or deposit Rs 2000 notes. However, the central bank extended the deadline after a review.
In its statement, RBI said, "According to the data received from banks, of the total value of Rs 3.56 lakh crore of Rs 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."
It added that after October 7, people can exchange Rs 2000 notes at 19 RBI Issue Offices. The central bank had withdrawn the notes from circulation in May this year.
It had said that the use of Rs 2000 notes for transactions had declined significantly since their introduction in 2016 after the demonetisation exercise. The number of Rs 2,000 notes in transaction had declined from its peak value of Rs 6.73 lakh crore in March 2018, constituting 37.3 per cent notes in circulation back then to Rs 3.62 lakh crore in March 2023, which was only 10.8 per cent of notes in circulation.
As per the central bank, notes of other denominations are sufficient to meet the requirements of public. People can either exchange the Rs 2000 notes they have at banks, with a limit of Rs 20,000 a day or opt for depositing the banknotes in their accounts.
Importantly, the central bank has said that the notes will not stop being legal tender after October 7.