Here's why you have all the right to return Rs 2,000 banknotes to RBI even after Sep 30 deadline!
According to the Constitution of India, RBI has liability towards Rs 2,000 bank notes. And hence, unless and until the government enacts a new law that extinguishes the RBI’s liability towards the Rs 2,000 currency notes, the apex bank, cannot deny any citizen from returning back the Rs 2,000 currency notes.
Worried about what would happen if you don’t return Rs 2,000 banknotes before the deadline of September 30, 2023? Well! Worry not! Even if you miss the deadline, you can still deposit Rs 2,000 banknotes directly with the RBI. According to the constitution of India, the Reserve Bank cannot deny accepting Rs 2,000 bank notes deposits that would be made by the citizens even after the deadline of September 30, 2023. According to the Constitution of India, RBI has liability towards Rs 2,000 bank notes. And hence, unless and until the government enacts a new law that extinguishes the RBI’s liability towards the Rs 2,000 currency notes, the apex bank, cannot deny any citizen from returning back the Rs 2,000 currency notes.
So, even after September 30, citizens can very much deposit the currency notes. The only thing is that right now they can deposit denominations of the currency at branches of various banks of the country. But after the deadline ends, they can only deposit the Rs 2,000 banknotes at regional branches of the Reserve Bank.
When the government had demonetised Rs 500 and Rs 1,000 bank notes back in 2016, it had to enact Specified Bank Notes Cessation of Liabilities Act. This law extinguished RBI’s liabilities towards the old Rs 500 and Rs 1,000 bank notes. And then, the notes were demonetised.
And in case of Rs 2,000 notes, the government has not even announced demonetisation. The RBI has only asked citizens to return back the denomination to the banking system. So, unless and until similar law is enacted for Rs 2,000 banknotes, the RBI cannot deny accepting direct deposit made by citizens at its regional branches even after the deadline of September 30 ends.
There has been a lot of confusion regarding what options citizens would have if they miss the deadline. Hope, this article removes all their doubt.
Maybe just before the Sep 30 deadline, the RBI may come out with a clarification or extend the deadline to avoid last minute rush.
The apex bank had announced on May 19, 2023, that banks will not accept deposits or exchange of Rs 2,000 currency notes after September 30. Citizens were given six months to return the denomination to the country’s banking sector.
As on August 31, 2023, 93% of Rs 2,000 banknotes in circulation have been returned to the banking sector. This is worth Rs 3.32 lakh crore.