[MyLife_MyCar]

On a lighter note:

The 2000 rupee note is not banned. Actually, the GPS chip ran out of battery. Hence, govt. is taking the notes back to recharge the battery.

- received as a forwarded message on WhatsApp

[Sree73]

Originally Posted by warrioraks

One thing is not clear. If I go to the bank on 15th October and try to deposit 2000 rupee notes in my account, will the bank accept it?

As of now, Sept 30th is the deadline for conversion. So, Oct 15th, if you try Rs 2000 currency for deposit, it will not work as it will cease to be a legal tender from Oct 1st onwards.
But, as our past experience, the deadline most probably will get extended.

[saket77]

Originally Posted by Sree73

So, Oct 15th, if you try Rs 2000 currency for deposit, it will not work as it will cease to be a legal tender from Oct 1st onwards.

The 2000 rupee note will continue to be a legal tender. The deadline to deposit the same in bank might be extended.
It may be, by virtue of a separate declaration, in future that it may cease to be a legal tender.

Also, as I understand, there is no limit on the deposit if it is made in your account. There is a limit of 10 notes if exchanged over the counter.

[condor]

Originally Posted by ashis89

Instead the cash horders will face a challenge exchanging bulk cash at the banks.

Like what happened in 2016, these people will send their workers/followers to do the exchange. But the form that needs to be filled in for the exchange will be the spoil-sport.

Originally Posted by warrioraks

If I go to the bank on 15th October and try to deposit 2000 rupee notes in my account, will the bank accept it?

No. You have 4 months + 1 week to do exchange/deposit. And its not like in 2016 - you have the more widely used 500's for use, plus digitial transactions.

The one reason I can think of is - finding a few notes hiding somewhere, not found before the deadline. Like I found a couple of 1000's sitting away in a gift cover. Now those notes are the gift/souvenir from my friend

[ashis89]

Originally Posted by condor

Like what happened in 2016, these people will send their workers/followers to do the exchange. But the form that needs to be filled in for the exchange will be the spoil-sport.

In 2016, some of these these workers, followers, Jan dhan account holders made good money via commission to convert the black money. Those who are even remotely aware, they will make some gain this time too.

A lot of this money will be funnelled through cash heavy businesses which have high operational expenses, just like last time.

[warrioraks]

Originally Posted by condor

No. You have 4 months + 1 week to do exchange/deposit. And its not like in 2016 - you have the more widely used 500's for use, plus digitial transactions.

That’s what the confusion is.
If the banks stop accepting these notes after 30th September, what is the meaning of the statement where they say the note will still be considered as legal tender.

Why would a shopkeeper take a 2000 note if they cannot deposit it in the bank.

For me, banks not accepting these notes from October is practically the death knell for it being a valid legal tender as well.

[rx100]

A mistake made earlier been corrected now.

The hoarders would find some way to make it white similar to how it happened in 2016.

[DigitalOne]

Originally Posted by warrioraks

For me, banks not accepting these notes from October is practically the death knell for it being a valid legal tender as well.

Practically speaking, you are right. But legally this is similar to, say Bitcoin in many countries (not India). You can pay for goods or services in BTC but not deposit it in regular banks.

[condor]

Originally Posted by warrioraks

That’s what the confusion is.
If the banks stop accepting these notes after 30th September, what is the meaning of the statement where they say the note will still be considered as legal tender.

I dont see what is there to get confused with that.

@Samurai has also said a few posts back that this is a withdrawal, and not demonetization of the note. That is why it is still legal tender. There is a cut-off date with sufficient time for the common man to complete the exchange/deposit. Its legal tender, and you can offer it as payment. It's a different thing that the receiver can refuse to take it - just like when a shopkeeper refuses your 500/- note for a 20/- purchase.

The Rs 2000/- note was always a temporary measure and part of the demonetization. It was to have been withdrawn 2 years back, but put off due to covid.

Just go thru the notification a few times, and it will become simple. It's as complicated as any new scientific concept that you came across in school, And as simple to understand too.

[thanixravindran]

Originally Posted by warrioraks

That’s what the confusion is.
If the banks stop accepting these notes after 30th September, what is the meaning of the statement where they say the note will still be considered as legal tender.

Why would a shopkeeper take a 2000 note if they cannot deposit it in the bank.

For me, banks not accepting these notes from October is practically the death knell for it being a valid legal tender as well.

You are right. It is legal tender till 30th Sep. But unclear what is the plan after that. This article covers the same.

https://www.moneycontrol.com/news/bu...-10628171.html

Last time during 2016, those notes were immediately made invalid ceasing to be legal tender. Also, holding beyond a huge value was proposed to be criminalized at that time. Not sure whether it happened.

[Turbanator]

Originally Posted by warrioraks

That’s what the confusion is.
If the banks stop accepting these notes after 30th September, what is the meaning of the statement where they say the note will still be considered as legal tender.

Agree, am sure RBI will come with a revised guideline shortly. If this cannot be deposited in banks, how can this be legal tender any longer? Why will businesses accept such notes after that date?

The above article mentions this clearly, just like moneycontrol has mentioned what can happen after that and so can any other members but this anomaly has to be corrected before end date.

Well, the RBI has not specifically said anything about the legal tender status of the Rs 2,000 note after September 30. At the time of publishing this copy, a central bank spokesperson hadn't responded to a set of questions on the legal status of the Rs 2,000 note after September 30.

[IndieGooner]

https://www.onmanorama.com/news/kera...notes.amp.html

Bevco which is Kerala's beverages corp has apparently made an official circular instructing it's outlets to stop accepting Rs 2000 notes with immediate effect. Of course, considering how rare these notes are now, it's not going to really impact anyone. However, it doesn't feel right for a government corporation to stop accepting a denomination that RBI still terms as legal tender.

[RahulNagaraj]

The Reserve Bank of India (RBI) on Friday announced to withdraw the Rs 2,000 denomination banknotes from circulation. However, the Rs 2,000 notes will continue to be legal tender.

The central bank has asked people to deposit the Rs 2,000 banknotes into their accounts and/or exchange them into banknotes of other denominations at any bank branch. Exchange facility for Rs 2,000 banknotes up to Rs 20,000 at a time would be available from May 23, said an RBI statement.

The RBI has asked banks to provide deposit and/or exchange facilities for Rs 2,000 notes until September 30, 2023.

Additionally, the RBI's 19 Regional Offices (ROs) with Issue Departments will also serve as exchange points until the end of September.

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.

The RBI has also advised banks to stop issuing Rs 2,000 denomination banknotes with immediate effect.

While the Rs 2,000 notes will be gradually pulled out of circulation, they will remain legal tender beyond the withdrawal date. The public can continue to use these notes for transactions and also accept them as payment.

'Second surgical strike on black money

BJP leader Sushil Kumar Modi termed the decision a "second surgical strike on black money".

"During demonetisation, the government started printing Rs 2,000 notes to give immediate relief to the people. This will not trouble the common man as they do not have Rs 2000 notes," he said.

Meanwhile, former RBI deputy governor R Gandhi said the withdrawal of Rs 2,000 bank notes would help in curbing black money to a "great extent" as people are hoarding the "high value currency".

Parties slam decision

In a tweet, Chidambaram said, "As expected, the government/RBI have withdrawn the Rs 2000 note and given time until September 30 to exchange the notes. The Rs 2000 note is hardly a popular medium of exchange. We said this in November 2016 and we have been proved correct. The Rs 2000 note was a band-aid to cover up the foolish decision of demonetising Rs 500 and Rs 1000 notes which were popular and widely exchanged currencies. A few weeks after Demonetisation, the government/RBI were forced to re-introduce the Rs 500 note. I shall not be surprised if the government/RBI re-introduced the Rs 1000 note as well. Demonetisation has come full circle!"

Reacting to the development, Aam Aadmi Party leader Saurabh Bhardwaj said: "This whole concept of starting the circulation, stopping the circulation of notes, or issuing of new notes, was started by PM Modi and the economy suffered due to this ... I don't know what will be the pros and cons of this step but I hope the decision was taken by the experts."

Congress general secretary in charge of communications Jairam Ramesh slammed the move on Twitter. "Typical of our self-styled Vishwaguru. First Act, Second Think (FAST). 2000 rupee notes introduced with such fanfare after that singularly disastrous Tughlaqi firman of Nov 8, 2016, are now being withdrawn," he said.

Congress leader Pawan Khera also criticised the decision, stating that the "ghost of Nov 8, 2016 has come back to haunt the nation once again".

Objective met: RBI

The Rs 2,000 denomination banknote was introduced in November 2016 primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time.

The objective of introducing Rs 2,000 banknotes was met once banknotes in other denominations became available in adequate quantities.

About 89% of the Rs 2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years.

The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3% of Notes in Circulation) to Rs 3.62 lakh crore constituting only 10.8% of notes in circulation on March 31, 2023.

"It has been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public," the RBI said Friday.

Source: TimesOfIndia

[warrioraks]

Originally Posted by condor

I dont see what is there to get confused with that.

@Samurai has also said a few posts back that this is a withdrawal, and not demonetization of the note. That is why it is still legal tender. There is a cut-off date with sufficient time for the common man to complete the exchange/deposit. Its legal tender, and you can offer it as payment. It's a different thing that the receiver can refuse to take it - just like when a shopkeeper refuses your 500/- note for a 20/- purchase.

Hi Condor, it’s not that straight forward for someone who deals with these notes on a daily basis.
If the banks stop accepting it, what is the guarantee that other people/businesses will accept it? In that scenario, how is the 2000 rupee note different from a Sodexo coupon which has limited acceptability as well?
We all know Sodexo is not a legal tender but is used a parallel currency in a limited way.
What if I purchase something worth Rs 2000 from a shop and the shopkeeper still rejects my 2k note because they will not be able to deposit in bank? Our currency system works because people know that the notes and coins will be readily acceptable. Because of the ambiguity I highlighted above, we will start seeing the acceptability of this Rs 2000 note going down very soon.

Originally Posted by thanixravindran

You are right. It is legal tender till 30th Sep. But unclear what is the plan after that. This article covers the same..

Originally Posted by Turbanator

Agree, am sure RBI will come with a revised guideline shortly. If this cannot be deposited in banks, how can this be legal tender any longer? Why will businesses accept such notes after that date?

Exactly my point.

Originally Posted by IndieGooner

Bevco which is Kerala's beverages corp has apparently made an official circular instructing it's outlets to stop accepting Rs 2000 notes with immediate effect. Of course, considering how rare these notes are now, it's not going to really impact anyone. However, it doesn't feel right for a government corporation to stop accepting a denomination that RBI still terms as legal tender.

I am sure other shops will follow soon. Repeating myself here but the 2000 note being a legal tender loses all meaning with such a move.

[DigitalOne]

Originally Posted by warrioraks

Repeating myself here but the 2000 note being a legal tender loses all meaning with such a move.

The difference is that even after 30th September, if the buyer and seller agree, the buyer can still pay using a 2000rs note, and they won't be doing anything illegal. In a practical sense, the 2000rs has lost all meaning, but not legally (as in a formal, written way). I know this is just hair-splitting .

_________

Bengaluru liquor stores, hotels see more Rs 2,000 notes

Establishments that didn’t see a single Rs 2,000 note for months together now have customers coming in with them

Source

Alcohol stores value more effectively than currency notes .