Published - 20 May 2023 by Tractor Junction
Breaking News: In a surprise move, the Reserve Bank of India (RBI) announced the withdrawal of ₹ 2,000 currency notes from circulation on Friday. But worry not! The 2,000 note will remain legal tender. You have time till September 30 to either deposit or exchange them at banks and RBI Regional offices. But you can exchange only 10 notes at a time!
The Reserve Bank of India announced the discontinuation of ₹ 2000 currency notes on Friday, 19 May. In a press release, RBI said this is being done under its "Clean Note Policy". However, the notes will continue to be legal tender.
The RBI has also instructed all the banks to meticulously follow its master plan for dealing with counterfeit notes. In any case, ₹ 2,000 notes submitted to the bank are found to be fake. The RBI’s letter to the bank also states how to implement the ₹ 2,000 note withdrawal: “All banknotes in the denomination received by the banks must be immediately sorted using Note Sorting Machines or (NSMs) to check genuineness and accuracy.”
The report also mentions, "The instructions covered in our Master Direction dated April 03, 2023, on detection, reporting, and monitoring of counterfeit notes shall be meticulously followed."
1. Banknotes tendered over the counter shall be verified for legitimacy through machines.
2. If the bank finds counterfeit notes, no credit for the same currency will be given to the customer.
3. Any notes that are found to be fake will be marked "COUNTERFEIT NOTE" and impounded according to the rules. Each such impounded note must be authenticated and registered in a separate register.
4. The Counterfeit Notes shall under no circumstances be destroyed by the bank branches or returned to the tenderer. A penalty will be applied if banks fail to seize counterfeit notes discovered at their location. This is seen as the bank's intentional involvement in circulating counterfeit notes.
5. When a banknote tendered is found to be counterfeit, an acknowledgement receipt in the prescribed format must be sent to the tenderer by the bank.
1. The RBI said that ₹ 2,000 notes will remain legal tender, which means they will be accepted if offered in debt payment. The bank also announced a time limit to take the note off circulation.
2. The window to exchange ₹ 2,000 notes will open on May 23 since the RBI wants to give banks enough time for preparatory arrangements. The facility to exchange ₹ 2,000 notes will also be available at all bank branches and 19 regional offices of RBI.
3. The RBI clarified that a Business Correspondent that provides banking services in underbanked areas could exchange ₹ 4,000 per day.
4. A non-account holder can exchange ₹ 2,000 banknotes up to a limit of 10 notes which calculates to ₹ 20,000 at a time till September 30.
5. The RBI clarified that the currency exchange facility is completely free of cost. Further, banks have been instructed to make arrangements for senior citizens and persons with disabilities.
1.What is the Clean Note Policy?
The Reserve Bank of India adopts Clean Note Policy to ensure the availability of authentic banknotes to the public.
2. Does the legal tender status of ₹2000 banknotes remain?
Yes, The 2000 banknote will continue to be legal tender.
3. Can ₹2000 banknotes be used for everyday transactions?
Yes, Public members can continue to use 2000 banknotes for their transactions. However, they are advised to deposit and/or exchange these banknotes on/or before September 30, 2023.
4. What should the public do with the ₹2000 denomination banknotes they held?
The public can approach bank branches for deposits and/or exchanges of ₹2000 banknotes held by them.
5. Is there an operational limit on ₹2000 banknotes that can be exchanged?
People can exchange ₹2000 banknotes up to ₹20,000, 10 notes at a time.
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