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Important Reminder for Indian Citizens

The Reserve Bank of India (RBI) has decided to extend the deadline for depositing and exchanging Rs 2,000 currency notes until October 7. Starting from October 8, bank branches will no longer accept these notes, and they must be deposited at the regional offices of the central bank.

However, individuals will still have the option to exchange and deposit Rs 2,000 notes at RBI Issue Offices, with a limit of Rs 20,000 per transaction, as stated in an RBI announcement. It’s important to note that these notes will continue to be considered legal tender even after October 7.

The RBI initially announced the withdrawal of Rs 2,000 notes from circulation on May 19, specifying that people could deposit or exchange these banknotes until a designated date.

“As the originally specified withdrawal period has concluded and following a review, the RBI has decided to extend the current arrangement for depositing and exchanging Rs 2,000 banknotes until October 7, 2023,” stated the RBI.

As of May 19, out of the total value of Rs 3.56 lakh crore of Rs 2,000 banknotes in circulation, notes worth Rs 3.42 lakh crore, equivalent to 96% of the issued notes, had been returned to the banking system.

The RBI also mentioned that individuals or entities within the country can send these notes via India Post to any of the 19 RBI offices for crediting to their bank accounts, subject to relevant RBI/government regulations, the submission of valid identity documents, and due diligence as determined by the RBI. In cases related to investigations, law enforcement agencies, government departments, or public authorities can deposit or exchange Rs 2,000 banknotes at any of the 19 RBI Issue Offices without any prescribed limit.

The RBI did not set a definitive last date for exchanging these notes, only stating that the facility for exchange or deposit at its 19 regional offices would be available “until further notice.” It’s worth noting that the legal tender status of these notes may be revoked after the last date.

Following the withdrawal of these notes, the banking system saw a significant increase in deposits. Consequently, the central bank introduced an incremental cash reserve ratio (I-CRR) in August to manage a portion of the funds and regulate liquidity in the banking system. Earlier this month, the RBI decided to phase out the I-CRR.

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