The Reserve Bank of India (RBI) on Friday made an announcement about the withdrawal of Rs 2000 denomination notes from circulation. As a part of this decision, the RBI has instructed banks to cease the issuance of Rs 2000 notes with immediate effect. Alongside this directive, the central bank has outlined the maximum exchange limit and procedures for handling these notes, aiming to minimize inconvenience to the public.
Under the new guidelines, banks are permitted to exchange Rs 2000 banknotes up to a limit of Rs 20000 per account holder, allowing a maximum of 10 notes per transaction. The exchange facility will be provided by all banks through their branches.
Deposits of Rs 2000 notes will be accepted in usual manner
The RBI has given banks till May 23 to get ready to exchange the Rs 2000 notes while deposits of the notes are accepted in usual manner. The central bank has also said the ATMs/Cash Recylers to be reconfigured accordingly.
Business Correspondents may also be allowed to exchange Rs.2000 banknotes upto a limit of Rs 4000 per day for an account holder. For this purpose, banks may, at their discretion, enhance the cash holding limits of BCs.
For providing deposit/exchange facility to people residing in remote/unbanked areas, banks may consider using mobile vans, if necessary, it said.
For Jan Dhan Yojna Accounts and BSBD Accounts, the usual limits for crediting the value of Rs 2000 notes will apply mutatis mutandis. Banks will ensure compliance with Cash Transaction Reporting (CTR) and Suspicious Transaction Reporting (STR) requirements, as applicable.
The denomination notes in Currency Chests
Banks are instructed to disallow the withdrawal of Rs 2000 denomination notes from Currency Chests (CCs). All balances held in CCs will be classified as unfit and prepared for dispatch to the respective RBI offices. Banks are required to sort all banknotes received in this denomination immediately using Note Sorting Machines (NSMs) to ensure accuracy and genuineness. The sorted notes will be either deposited in the currency chests under the Linkage Scheme or readied for dispatch to the nearest RBI Issue Office.
The facility for deposit and/or exchange of Rs 2000 banknotes will be available to the public until September 30. The banks must comply with all reporting requirements, including Cash Transaction Reporting (CTR) and Suspicious Transaction Reporting (STR).
