The end of Rs 2,000 note: Today is last date to exchange...What will happen after the deadline?

India's biggest denomination is on a journey towards its end as Rs 2,000 currency note marks its official deadline on September 30 - Saturday. The Rs 2,000 currency note, which came to life seven years ago during the demonetisation exercise, has now been called off from the official use, though it will remain legal tender after its deadline. 

After September 30, Rs 2,000 currency notes will not be accepted for transactions. Earlier, when the deadline loomed, there were speculations that the deadline will be extended till the end of October 2023. However, the Reserve Bank of India (RBI) has asserted that there will be no extension for the deadline and issued a clarification that the Rs 2,000 denomination notes will cease to have its value after September 30. 

The denomination will become as normal as a piece of paper if the bearer fails to exchange the note in any bank before September 30. The deadline has come at a time when the country is largerly getting rid off its highest denomination as Rs 500 currency notes have become a source for major transactions. With the deadline, the Rs 2,000 bank notes will go into history. 

On May 19, 2023, the RBI announced that Rs 2,000 bank notes will be removed from circulation and it gave four months deadline to deposit or exchange the notes. September 30 was set as the deadline. The people are instructed to any of their nearest banks to exchange the notes without any services charges and that the regional branches of RBI across the country had also set up divisions to exchange the notes. 

As per the guideline of the RBI, a person is allowed to exchange 2,000 banknotes up to a limit of Rs 20,000 at a time at any bank branch. It has been reported that after September 30, though the notes will continue to remain legal tender. So what will happen if you miss the deadline? After the deadline, the notes will not be accepted by any banks or for any transacations and can only be exchanged with the RBI. 

Over 90 per cent of Rs 2,000 bank notes have already returned to banks. On September 2, RBI announced that as much as 93 per cent of Rs 2,000 bank notes that were in circulation have returned to banks. As per the latest data that was collected from the banks, of the total Rs 2,000 bank notes received, 87 per cent is in the form of deposits while about 13 per cent has been exchanged into other denomination banknotes. 

As per the RBI guidelines, the people can exchange Rs 2,000 bank notes at any nearest banks without submitting a request slip or ID proof. However, as it has been reported that some public sector banks are asking for identity proof for a smooth transaction, it is advisable to carry any ID proof to exchange the bank notes.