The Reserve Bank of India (RBI) announced on Friday that Rs 2,000 notes will be withdrawn from circulation. In a press release, the central bank said this is done under its “Clean Note Policy”.
Here are 5 points from the RBI release:
The RBI said the Rs 2,000 note will remain legal tender, meaning they will be accepted if presented as payment of a debt. The bank also announced a time limit to remove the note from circulation. It asked people to redeem them at banks by September 30.
The window to exchange Rs 2,000 notes will open on May 23, as the RBI wants to give banks time to make preliminary arrangements. The facility to redeem Rs 2,000 notes will also be available at 19 regional offices of RBI.
There is a limit on the number of notes of Rs 2,000 that can be exchanged. According to the RBI release, people can exchange up to a limit of Rs 20,000 at a time. They can also approach a Business Correspondent (BC), an extended arm of a bank branch that provides financial and banking services in unbanked and unbanked areas. The limit in this case is Rs 4,000 per day.
It is also not necessary for a person to be a customer of the bank to stop exchanging currency soon. A non-account holder can exchange Rs 2,000 notes up to a limit of Rs 20,000 at any bank branch.
The RBI clarified that people do not have to pay a fee to use the exchange facility. Furthermore, banks have been instructed to make arrangements to ease the inconvenience for seniors and persons with disabilities who wish to exchange or deposit Rs 2,000 notes.
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