State Bank of India Issues Major Update Regarding Exchange Of Rs. 2,000 Notes

 New Delhi: The State Bank of India today issued a directive to all its branches putting an end to rumours questioning whether any form or slip will be necessary while exchanging or depositing 2,000 notes, stating that it will be permitted "without obtaining any requisition slip". The rule underlined that up to 2,000 notes totaling 20,000 can be deposited or exchanged at once.

The explanation follows reported false claims made on social media that producing identifying credentials like an Aadhaar card and filling out a form will be required in order to exchange the prohibited notes.

2,000 to 20,000 rupee notes can be exchanged up to ten times each day, according to government officials. A person must wait in queue after exchanging the money, they explained, they may keep returning and joining the same queue.

After exchanging or depositing the notes once, there are no restrictions on joining the line again.

The Reserve Bank of India announced on Friday that it would remove the INR 2,000 notes from circulation on September 30 and allow citizens to swap them or deposit them in their bank accounts. Starting on May 23, the 19 regional offices of the Reserve Bank of India (RBI) and other banks will accept 2,000 rupee notes in exchange for notes of lower denomination. According to the RBI, they will continue to be accepted as legal money. 

The central bank stated that this is being done in accordance with its "Clean Note Policy" in a release

According to sources , even if someone holds a 2,000 note after the present deadline, it will still be a legitimate tender. The RBI may extend the deadline from September 30 if necessary.

To exchange soon-to-be-discontinued currency, one does not have to be a customer of the bank. At any bank branch, a non-account holder may exchange up to 20,000 rupees worth of banknotes at once.

The RBI made it clear that there are no fees associated with using the exchange facility. Additionally, banks have been told to make procedures to minimise the inconvenience for elderly people and people with disabilities who want to exchange or deposit notes worth 2,000.

"Approximately 89% of the banknotes in the denomination of 2,000 were printed before March 2017 and are nearing the end of their four to five year expected lifespan. According to the RBI, the total value of these banknotes in circulation decreased from a peak of 6.73 lakh crore as of March 31, 2018 (37.3 percent of all notes in circulation) to 3.62 lakh crore as of March 31, 2023, or 10.8% of all notes in circulation.