What Happens If You Fail To Deposit, Exchange Rs 2,000 Note By September 30

The government on Friday announced that it will withdraw the Rs 2,000 denomination banknote from circulation but it will continue as legal tender.

"The 2,000 denomination banknote was introduced in November 2016 primarily to meet the currency requirements of the economy in an expeditious manner after the withdrawal of the legal tender status of all 500 and 1,000 banknotes in circulation at that time," the RBI said in a statement.

With RBI's new announcement, everyone is curious to know what happens to Rs 2,000 notes after September 30. The RBI has said that Rs 2,000 note continues to be a legal tender. This means customers can use the Rs 2,000 note for buying goods and services, in everyday life transactions till September 30. However, the central bank did not specifically mention anything about what will happen to Rs 2,000 note, if not exchanged or deposited in banks by the September 30 deadline.

The central bank can provide customers an opportunity to exchange their Rs 2,000 notes, at specified RBI offices, even after September 30, via a new circular, if it deems fit, as it was done in the case of withdrawal of pre-2005 notes done in 2013-14. That window is open for all, in case you miss depositing or exchanging at the bank.

The FAQs issued by the RBI on Indian Currency, dated 19 December 2017 states that the facility for exchange notes is available in specified offices of RBI.

"Tenders of SBNs in excess of Rs 5,000 into a bank account will be received for credit only once during the remaining period till December 30, 2016. The credit in such cases shall be afforded only after questioning tenderer, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation. The explanation should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised in CBS to that effect so that no more tenders are allowed," the RBI said in a press release dated December 19, 2016.

2,000 Rupee Note Withdrawal: Facts And Myths

Myth: Rs 2,000 notes will not be valid after September 30, 2023
Fact: Rs 2,000 notes will continue to be legal tender even after September 30, 2023.

Myth: Only your account holding bank is authorised to exchange Rs 2,000 currency notes for smaller denominations.
Fact: Any bank, regardless of account ownership, is authorised to exchange Rs 2,000 currency notes for smaller denominations.

Myth: There is a fee to be paid for the exchange facility
Fact: The exchange of notes shall be provided free of cost!

Myth: It is demonetisation again
Fact: The exchange of Rs 2,000 notes into smaller denominations is simply a step to facilitate smoother transactions and meet evolving needs.