RBI stops exchange of Rs 2,000 notes at bank branches, offers alternative

JNS: Reserve Bank of India (RBI) has discontinued the facility for depositing and exchanging Rs 2,000 denomination currency notes at bank branches from 7 October.

Starting from October 8, members of the public can still deposit or exchange these Rs 2,000 notes, but this service will be exclusively available at seven designated RBI issue offices. The RBI has clarified that there will be a limit of Rs 20,000 per transaction for this facility, as stated in a press release.

Importantly, it’s crucial to note that Rs 2,000 banknotes will remain legal tender, unless otherwise indicated.

As of May 19, there were Rs 3.56 lakh crore worth of Rs 2,000 notes in circulation, according to RBI Governor Shaktikanta Das during a press conference held after Friday’s Monetary Policy Committee announcement. He also highlighted that Rs 12,000 crore worth of these notes are still outstanding and have not yet been returned.

This development marks a significant change in the accessibility and handling of Rs 2,000 notes in India, emphasizing the central bank’s strategy in managing the circulation and usage of this currency denomination.

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