RBI extends deadline for exchanging Rs 2,000 notes to October 7th.

NEW DELHI: The Reserve Bank of India (RBI) has extended the deadline for the exchange of Rs 2,000 notes until October 7. The original deadline was set to expire on October 1. This decision comes after a review of the withdrawal process. The RBI stated that based on data received from banks, 96% of the Rs 2,000 banknotes in circulation as of May 19, 2023, have been returned. This means that only Rs 0.14 lakh crore worth of Rs 2,000 notes are still in circulation as of September 29, 2023.

The Rs 2,000 denomination banknote was introduced in November 2016 after the demonetization exercise, which led to the scrapping of Rs 500 and Rs 1,000 banknotes. The note was intended to meet the currency requirement of the economy quickly. However, the RBI had announced earlier this year that it would withdraw the Rs 2,000 denomination banknotes from circulation starting October 1. While the note remains legal tender until the exchange deadline, banks were advised to stop issuing such banknotes immediately.

The extension of the exchange deadline provides more time for individuals holding Rs 2,000 notes to exchange them for other denominations or deposit them in banks. This move will help ensure a smooth transition and minimize the inconvenience faced by individuals who still possess these banknotes.

In summary:
★The Reserve Bank of India has extended the exchange deadline for Rs 2,000 notes until October 7.
★Based on data received from banks, 96% of the Rs 2,000 banknotes in circulation as of May 19, 2023, have been returned.
★Only Rs 0.14 lakh crore worth of Rs 2,000 notes are still in circulation as of September 29, 2023.
★The Rs 2,000 denomination banknote was introduced in November 2016 after the demonetization exercise.
★The deadline extension provides more time for individuals to exchange or deposit their Rs 2,000 notes.

(With inputs from agencies)