Rs 2000 notes withdrawn from circulation; THIS is the limit of exchange for older notes

The Reserve Bank of India (RBI) on May 19 directed banks to stop issuing Rs 2,000 currency notes and end its circulation with immediate effect. However, it also said that the public will be allowed to exchange the banknotes they currently possess in all banks from May 23. In an official release, the RBI cited several reasons for announcing the withdrawal of Rs 2,000 currency notes, one of which was adequacy of notes of other denominations. 

Meanwhile, there are several questions that need to be answered such as what is the deadline to exchange the older notes and how much can one exchange at once. 

What is the limit of exchange of Rs 2,000 currency notes?

The RBI has set a limit of Rs 20,000 which can be exchanged for the older Rs 2,000 currency notes at a time. "Exchange of Rs 2,000 banknotes into banknotes of other denominations can be made upto a limit of Rs 20,000/- at a time," an official release by the RBI read. 

"Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions," it further read. 

What is the deadline for the exchange?

RBI says that the public will be allowed to exchange their Rs 2,000 notes from May 23 till September 30. "All banks shall provide deposit and/or exchange facility for Rs 2,000 banknotes until September 30, 2023. Separate guidelines have been issued to the banks," the RBI's release read.