The State Bank of India (SBI), the country’s largest bank, has clarified that no form or identity proof is required to exchange the demonetized Rs 2000 notes.
Contrary to claims on social media, customers can easily exchange these high denomination notes at any SBI branch without the hassle of filling any forms or presenting an ID card.
The process of replacing the Rs 2000 notes, which were withdrawn from circulation by the Reserve Bank of India (RBI), will commence tomorrow, May 23, 2023. Each person can exchange up to 10 notes of Rs 2000 at a time.
Update from SBI
Dispelling rumors circulating on social media regarding the need for ID proof at banks to exchange the withdrawn notes, the State Bank of India has confirmed that, effective immediately, no form or identity proof is required to exchange the demonetized Rs 2000 notes.
A circular issued by the bank on May 20 clarifies that individuals can exchange notes of other denominations for Rs 2000 notes without any additional requirements.
Notes Exchange Deadline: September 30
The process of exchanging the demonetized Rs 2000 notes will continue until September 30, 2023. The Reserve Bank of India allows individuals to exchange notes up to a limit of Rs 20,000 at a time.
All banks have made the necessary preparations as per RBI’s instructions for the note exchange process. While the RBI has withdrawn the 2000 rupee notes from circulation, they are still considered legal tender for the time being. The central bank has also instructed all banks not to issue new 2000 rupee notes.
Started in 2016…Closed in 2023
The government announced demonetization on November 8, 2016, discontinuing the circulation of 500 and 1000 rupee notes, which constituted a significant portion of the market at the time.
Following the demonetization, the RBI introduced the Rs 2000 notes. By March 2017, these notes accounted for approximately 89% of the total two thousand rupee notes issued by the central bank.
However, their circulation gradually declined, and as of March 31, 2018, the share of 2000 rupee notes in the total currency was only 37.3%.
Eventually, their printing was ceased due to diminishing circulation, and by March 31, 2023, the share of 2000 notes in the market had further reduced to 10.8%.
Notes Exchangeable at Any Bank Branch
In light of the demonetization, the Reserve Bank had announced that it would discontinue printing two thousand rupee notes in the 2018-19 fiscal year due to declining market share.
It was questioned whether customers could only exchange Rs 2000 notes at their own bank branch. The Reserve Bank clarified that any person can go to any bank branch across the country to exchange Rs 2000 notes, up to a limit of Rs 20,000 at a time.
It is not mandatory to hold an account at the bank branch. Additionally, the RBI has stated that the note exchange facility will be provided free of cost.
P Chidambaram Supports the Decision
Senior Congress leader and former Union Finance Minister P. Chidambaram expressed satisfaction with the Reserve Bank’s decision to withdraw the Rs 2000 notes from circulation.
He stated that it took seven years for the government to rectify the mistake made during the demonetization in 2016.
Chidambaram also expressed anticipation that the government would reintroduce the Rs 1000 note, while criticizing the decision to demonetize the Rs 1000 and Rs 500 notes, which he believed was a significant error not accepted by the people of the country.