Last 30 days left for exchanging Rs 2,000 notes, 13 bank holidays in September

HYDERABAD: In an ongoing effort to streamline the financial landscape, the Reserve Bank of India (RBI) had granted nearly four months for the exchange or deposit of Rs 2,000 notes, setting the cut-off date as September 30, 2023. The RBI ceased the circulation of Rs 2,000 banknotes on May 19, 2023.

As per the RBI press release issued on that day, "The facility for deposit and/or exchange of Rs 2,000 banknotes shall be available for members of the public up to September 30, 2023. The facility for exchange of Rs 2,000 banknotes shall be provided to all members of the public by all banks through their branches."

The process

For individuals with a bank account, the process of exchanging Rs 2,000 notes is relatively straightforward. A visit to their respective bank branch along with providing their account details is all that's required. Interestingly, there is no necessity for a requisition slip or an ID proof for this transaction.

Transaction limit for exchange

The RBI had also made it possible for non-account holders to exchange Rs 2,000 banknotes at any bank branch, without needing to furnish any form of ID proof. However, there is a limit in place. Each person can exchange up to Rs 20,000 worth of Rs 2,000 notes at a single time, and this service comes without any cost.

To facilitate this process, the RBI has made the facility for exchanging Rs 2,000 notes available at its 19 Regional Offices (ROs) with issue departments until September 30. Additionally, individuals can conduct these exchanges at their nearest bank branch.

Depositing Rs 2,000 banknotes is also an option for those who hold a bank account. The RBI clarified that there was no deposit limit for these notes. However, standard KYC norms and other statutory cash deposit regulations apply. Basic Savings Bank Deposit (BSBD) or Jan Dhan account holders need to adhere to the regular limits.

It's noteworthy that according to Rule 114B of the Income Tax Rules, quoting the PAN number is mandatory when a single-day cash deposit with a post office or bank exceeds Rs 50,000. For deposits below Rs 50,000, PAN quoting is not obligatory.

The RBI has outlined that the last date to deposit or exchange Rs 2,000 banknotes is September 30. Even though these notes continue to be legal tender, and the exchange process should be hassle-free, some public sector banks have taken their own approaches.

The RBI revealed that within 20 days of the withdrawal announcement, 50 per cent of the Rs 2,000 notes in circulation had been returned to banks. Union Minister of State for Finance Pankaj Chaudhary confirmed that Indian banks received Rs 2.72 trillion worth of Rs 2,000 banknotes up to June 30. A considerable 76 per cent of the Rs 2,000 currency notes in circulation had either been deposited or exchanged at banks.

For those planning to make these transactions, being aware of bank holidays is crucial. September will witness 16 bank holidays due to national and regional events which are

- September 3, 2023: Sunday

- September 6, 2023: Shri Krishna Janmashtami

- September 7, 2023: Janmashtami (Shravan Vd-8) and Shri Krishna Ashtami

- September 9, 2023: Second Saturday

- September 10, 2023: Second Sunday

- September 17, 2023: Sunday

- September 18, 2023: Varsiddhi Vinayak Vrata and Vinayaka Chaturthi

- September 19, 2023: Ganesh Chaturthi

- September 22, 2023: Shree Narayana Guru Samadhi Day

- September 23, 2023: Fourth Saturday and Maharaja Hari Singh’s birthday

- September 24, 2023: Sunday

- September 25, 2023: Birth anniversary of Shrimant Sankardeva

- September 27, 2023: Milad-e-Sherif (Birthday of Prophet Mohammad)

- September 28, 2023: Eid-e-Milad or Eid-e-Miladunnabi (Bara Vafat)

With the final date for Rs 2,000 banknote transactions fast approaching and bank holidays to consider, individuals have beeen advised to plan their visits accordingly.