The Reserve Bank of India (RBI) has extended the deadline for depositing or exchanging Rs 2,000 denomination banknotes until October 7, 2023. Originally, September 30 was set as the deadline to facilitate the withdrawal process.

In the past month, the RBI reported that about 93 percent of Rs 2,000 banknotes had been returned to the banking system since May when the central bank first announced the withdrawal of this high-denomination note from circulation.

People were instructed to exchange or deposit their Rs 2,000 notes at bank branches or regional branches of the RBI. Even non-account holders were allowed to exchange Rs 2,000 banknotes, up to a maximum of Rs 20,000 at a time, at any bank branch.

The RBI made the decision to withdraw the Rs 2,000 denomination banknotes from circulation on May 19 while maintaining their legal tender status. Banks were advised to stop issuing these banknotes immediately.

The Rs 2,000 banknote was introduced in November 2016 to address the urgent currency needs of the economy following the demonetization of all Rs 500 and Rs 1,000 banknotes in circulation at the time.

The government stated that once an ample supply of banknotes in other denominations became readily available, the original purpose of introducing the Rs 2,000 banknote had been fulfilled.

(Inputs from ANI)