RBI answers queries related to withdrawal of Rs 2,000 notes: Here's all you need to know !

Here is all you need to know about the move by the central bank -

The big decision of the Reserve Bank of India (RBI) regarding the withdrawal of Rs 2,000 currency notes from circulation from September 30 comes as a sudden development for Indians. With an aim to address some of the pressing queries regarding the move, RBI governor Shaktikanta Das held a press conference today (22 May 2023). Here is all you need to know about the move by the central bank -

1. What was the purpose of introducing the Rs 2,000 currency notes?
Addressing this foremost query, the RBI governor said that introduction of currency notes of Rs 2,000 served the prime purpose of quickly replenishing the value of money that was being taken out of the system through demonetisation. Now that the purpose has been served, there are enough notes of other denominations in circulation now, a fact that led to the decision of withdrawal of these notes, he said.

The RBI head also said that printing of this notes has been stopped as well. The central bank would see how many of these notes return back to the banks and accordingly decide on the extension of the September 30 deadline.

2. What has been said about people living abroad?
The RBI governor said that he sees no reason of rushing to the banks as people have 4 months to get the notes exchanged. As for people living abroad, he said, "We expect most of the notes to come back by September 30. Let me assure that people who are abroad and within India, we will be sensitive to the difficulties you may face. It will be our endeavour to address the difficulties of people."

3. What will happen to the legal tender status of Rs. 2000 banknotes?
The RBI has clearly said that the Rs. 2000 banknotes will continue to have their legal tender status.

4. Will Rs. 2000 banknotes still be valid for regular transactions?
Yes. General public will still be able to use these Rs. 2000 banknotes for normal transactions. Individuals can use these banknotes for making payments and also receive them as a form of payment. However, it is advisable to deposit or exchange these banknotes by September 30, 2023.

5. Is tere going to be any limit on deposit of Rs. 2000 banknotes into a bank account?
Rs. 2000 banknotes can be deposited in a bank account without restrictions subject to compliance with extant Know Your Customer (KYC) norms and other applicable statutory / regulatory requirements.

6. How many Rs. 2000 banknotes will be applicable for exchange, at a time?

Members of the public will be able to exchange Rs. 2000 banknotes up to to a limit of Rs. 20,000 at a time.

7. Can these notes be exchanged through Business Correspondents (BCs)?
Yes, these notes can be exchanged through Business Correspondents, but up to a limit of Rs. 4000 per day for an account holder.

8. Is it necessary to be a customer of the bank to exchange Rs. 2000 currency notes from its branches?
No. A non-account holder will also be able to exchange ₹2000 banknotes up to a limit of Rs. 20,000 at a time at any bank branch.

9. Are there any special arrangements for senior citizens, divyangjans, etc. for exchange and deposit?
Banks have asked to make arrangements in such a way that there is minimal inconvenience to the senior citizens, persons with disabilities, etc. coming to the bank for exchange / deposit of their notes.

10. Are there any grievance redressal mechanisms or complaint registration arrangements?
In cases of grievances or conflict, the complainant / aggrieved customer may first approach the concerned bank. IT the bank fail to respond to the case within 30 days of complaint registration or if the complainant is not satisfied with the response/resolution given by the bank, he/she can lodge the complaint under the Reserve Bank - Integrated Ombudsman Scheme (RB-IOS), 2021 at the Complaint Management System portal of RBI (cms.rbi.org.in).