Rs 2000 note exchange begins today, here's what you should know

The exchange process of junked Rs 2000 currency notes will begin from today, May 23. Banks have dedicated separate counters for people to swap their Rs 2000 currency notes for smaller denominations to make the process a bit smoother. The Reserve Bank of India on Friday said the process of swapping Rs 2000 currency notes, which will remain legal tender, will start from Tuesday and continue till the end of September.

The RBI Governor, Shaktikanta Das dismissed rumours of a new Rs 1000 currency note on Monday. “There’s no such proposal right now,” he told reporters here on Monday in his first media interaction after the decision to withdraw the highest denomination notes from circulation last Friday.

He also explained that even though a withdrawal of Rs 2000 notes has been ordered, these notes continue to be legal tender. Das further noted that shops must not refuse to accept these notes. He said, “From time to time, RBI withdraws notes of a particular series and issues fresh notes. We are withdrawing the Rs 2000 notes from circulation but they continue as legal tender.”

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Das also added that almost all Rs 2000 notes will come back to the government by September 30. He also urged banks not to issue soiled or torn notes to customers. When asked why the withdrawal of Rs 2,000 notes was ordered, the RBI boss said the notes completed their life cycle. Das further noted that the notes were printed 4-5 years back and their purpose also got over.

Here’s what you should know ahead of the Rs 2000 currency swap

1. The high-value notes can be exchanged without a requisition slip or identity proof, the RBI said. However, some banks might ask for identity proof during the swapping process.

2. In many states, banks have sought the help of local police to regulate queues in case of heavy rush, officials said. Banks have also cautioned people against trying to deposit or exchange fake Rs 2000 notes, saying a police case would be registered against such people.

3. In Uttar Pradesh, 12,000 bank branches have decided to set up separate counters for depositing or exchange of Rs 2000 notes. But banks are not expecting a huge rush as only 10 per cent of the Rs 2000 notes are in circulation.

4. Bank account holders whose KYC has been done can deposit any number of Rs 2000 notes in their accounts, and only worth Rs 10,000 will be allowed in Jan Dhan accounts.

5. Bankers in Patna seemed to be confused over the number of circulars issued by the Reserve Bank. While a few banks, mostly state-run, have decided to facilitate the exchange of ₹2,000 notes without Id proofs, others said it was mandatory to have identifiable records of the person exchanging the notes, in accordance with the banking regulator’s guidelines to check circulation of fake notes.

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