Saturday, December 9, 2023

No forms, ID cards needed for exchange of Rs 2000 banknotes: State Bank of India

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Customers of the State Bank of India (SBI) will not be needed to provide any ID cards or fill out any requisition forms in order to exchange their Rs 2000 currency notes. According to a notification published by the State Bank of India with all of its circles, they will be allowed to exchange a maximum of 10 currency notes of Rs 2000 at a time.

State Bank of India emphasized in its contact with all circles that the May 19 Annexure III – a request slip with separate columns for information on the customer’s identity proof – is now withdrawn with immediate effect. “Please arrange accordingly and extend all cooperation to members of the public so that the exercise is conducted in a smooth and seamless manner without any inconvenience to the public,” the State Bank of India said in official communication.

The Reserve Bank of India (RBI) decided on Friday to withdraw the Rs 2000 denomination currency notes from circulation, but they would continue to be legal tender. The Reserve Bank of India had advised banks to stop issuing Rs 2000 banknotes with immediate effect.

State Bank of India issued fresh guidelines after Reserve Bank announcement

The Reserve Bank of India, on the other hand, stated that citizens will be allowed to deposit Rs 2000 banknotes into their bank accounts and/or exchange them for banknotes of other denominations at any bank branch till September 30, 2023.

Starting May 23, 2023, Rs 2000 banknotes can be exchanged for banknotes of other denominations up to a limit of Rs 20,000 at a time at any bank. “It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public,” the Reserve Bank on Friday said.

The Rs 2000 denomination banknote was issued in November 2016, largely to address the economy’s currency needs quickly following the loss of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at the time.

When banknotes in other denominations became available in sufficient quantities, the goal of launching Rs 2000 banknotes was met. As a result, the printing of Rs 2000 banknotes was halted in 2018-19, according to the RBI.

Approximately 89% of Rs 2000 banknotes were issued prior to March 2017 and have reached the end of their anticipated life expectancy of four to five years.

The total value of these banknotes in circulation has decreased from Rs 6.73 lakh crore on March 31, 2018 (37.3 percent of Notes in Circulation) to Rs 3.62 lakh crore on March 31, 2023 (10.8% of Notes in Circulation).

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