You've got only 3 days to exchange your 2000-rupee notes. What happens if you don't?

September 30, 2023 is the last day to exchange your 2000-rupee notes. As we enter the last three days before the currency note gets officially withdrawn from circulation, people are left wondering what happens to these notes after the deadline. 

What

On May 19, 2023, Reserve Bank of India (RBI) made the official announcement that the highest value-holding currency note currently, the 2000-rupee note, will be withdrawn from circulation.

This announcement came across as a scary throwback to the long queues during the 2016 demonetisation call. 

However, this time around, the people of India had a considerable amount of time to deposit or exchange them from the banks, with RBI allowing till the end of September to do so.  

Just seven years after its introduction, India will say goodbye to the Rs 2000 note, with many left wondering two things:

• What happens to these notes after September 30, 2023?
• What led to this sudden withdrawal?

Let us answer the questions.

What happens to the 2000-rupee notes after September 30?

Along with the announcement from RBI about the note’s withdrawal, RBI also gave details about what will actually happen if you hold these notes beyond the end of September 2023. 

• The notes will remain legal even beyond the end of September, but will not be accepted in any form of transaction purposes. 
• If found to be using these notes beyond the given deadline, the holders will need to explain to RBI their reason for ignoring the deadline. 

What led to the decision to withdraw the 2000-rupee note? 

This throwback to Demonetisation 2016 sent shivers down the spine of a lot of Indian residents. Back then, people had to stand in mile-long queues to exchange their Rs 500 and Rs 1000 notes for the newly introduced Rs 2000 and Rs 200 notes. 

Only seven years down the line, the note which holds the highest value is going to say goodbye to India. 

RBI, along with the withdrawal announcement, has also reasoned why this decision:

According to RBI data,

• the cumulative worth of the Rs 2000 banknotes withdrawn from circulation reached Rs 3.32 trillion by August 31, 2023.
• As of August 31, 2023, the total worth of Rs 2000 banknotes in circulation amounted to Rs 24,000 crore.

This is too big a hit for the Indian currency to take, as per RBI, which has consequently resulted in the decision to withdraw the Rs 2000 note. 

According to the RBI, approximately 93% of the Rs 2000 notes in circulation up till May 19, 2023 have been returned to the banks.

Finally...

...if you're still left with any 2000-rupee notes, get them exchanged before the deadline -- September 30, 2023.