Consequences of holding Rs. 2,000 notes post September 30 deadline
The Reserve Bank of India (RBI) has set a deadline of September 30, 2023, for depositing or exchanging Rs. 2,000 denomination banknotes at banks across the nation. Announcing the withdrawal of these notes from circulation on May 19, the RBI allowed holders to deposit or exchange them until the deadline. With this critical deadline approaching, many citizens are anxious about the consequences of missing it.
Will Rs. 2,000 notes become illegal?
One question that looms large is will the Rs. 2,000 notes continue to be legal tender. The RBI's circular does not explicitly state that Rs. 2,000 denomination notes will lose their legal tender status after the deadline. This implies that they will continue to be recognized as legal currency.
Possible consequences of missing the deadline
Speculations are rife regarding the consequences of missing the deadline. It's worth noting that, following the 2016 ban on Rs. 500 and Rs. 1,000 notes, possession of these notes incurred a minimum fine of Rs. 10,000 for holding more than 10 of them, along with the possibility of imprisonment. While no official announcement has been made, a similar penalty is anticipated for Rs. 2,000 notes after September 30.
Specified Bank Notes Act, 2017: What does the law say
To eliminate the possibility of a parallel economy in society, the Parliament passed the Specified Bank Notes Act in 2017. This act prohibits individuals from holding more than 10 pieces of old notes or more than 25 pieces of the same denomination for study, research, or numismatics purposes. Violating this law is considered a punishable offense.
