The Reserve Bank of India (RBI) had originally set September 30 as the deadline to facilitate the completion of the withdrawal process. Last month, the RBI reported that approximately 93 per cent of Rs 2,000 banknotes had been returned to the banking system since May, when the central bank initially announced the withdrawal of the high-denomination note from circulation.
Individuals were instructed to exchange or deposit their Rs 2,000 notes at bank branches or regional branches of the RBI. Even non-account holders were permitted to exchange Rs 2,000 banknotes, up to a maximum of Rs 20,000 at a time, at any bank branch.
The RBI announced the decision to withdraw the Rs 2,000 denomination banknotes from circulation on May 19, though it maintained their status as legal tender. RBI had advised banks to cease issuing these banknotes with immediate effect.
Rs 2,000 banknote was introduced in November 2016, primarily to meet the rapid currency requirements of the economy following the demonetization of all Rs 500 and Rs 1,000 banknotes in circulation at the time.
Once banknotes in other denominations became readily available in sufficient quantities, the objective of introducing the Rs 2,000 banknote was achieved, the government said.
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