According to news agency ANI, the Reserve Bank of India (RBI) has said that the 2,000 denomination banknote would lose its value after September 30 and become simply another piece of paper if it is not exchanged at a bank.
This statement was made a day after reports said that the deadline for returning 2000 note redemptions on September 30 may be extended to the end of October.
The RBI took the 2000-dollar bills out of circulation on May 19 and offered people almost four months to deposit or exchange them.
The RBI has extended the deadline for exchanging or depositing these notes till today, September 30, which is now. People still have today’s time if it is still waiting since banks are open because it is the fifth Saturday. They can swap or deposit the 2000 note at the closest bank branch by going there. They can deposit or swap their 2,000 notes at regional RBI branches and bank branches. Any bank branch will swap 2000 banknotes up to a maximum of 20,000 at a time for non-account holders.
What happens after the deadline of September 30?
The notes will continue to be legal cash after 30 September, but they won’t be accepted for transactions and may only be exchanged for RBI.
Up to 93 percent of the 2000-euro banknotes that were in use on May 19 have reportedly been returned to banks, according to information provided by the RBI earlier on September 2.
According to information gathered from major banks, of the entire amount of banknotes in the denomination of 2000 that were returned from circulation, around 87 percent were in the form of deposits and only about 13 percent were converted into banknotes of other denominations.
Bloomberg, however, also reported that there are still around 240 billion rupees, or $2.9 billion, worth of the notes in use. While the great bulk of the 3.56 trillion rupees have been deposited in banks, as of September 1 just 7% of the notes were still in use, according to the research.
The 2000-dollar bills were taken out of circulation on May 19 by the RBI, who also said that they would still be considered legal money. The RBI has, however, ordered banks to stop printing these currencies right away.
The introduction of the 2000-denomination banknote in November 2016 was largely to quickly address the economy’s need for cash after all 500- and 1000-denomination banknotes in use at the time lost their legal tender validity.
After sufficient supplies of banknotes in additional denominations were available, the goal of introducing 2000 banknotes was achieved. The production of 2000 yen banknotes was therefore discontinued in 2018–19.
