The Reserve Bank of India (RBI) has issued a crucial deadline of September 30, 2023, for the deposit or exchange of Rs. 2,000 denomination banknotes at banks nationwide. On May 19, the RBI declared the withdrawal of these notes from circulation and permitted individuals to deposit or exchange them until the specified deadline.

There remains a significant question regarding the legal tender status of Rs. 2,000 notes after the deadline. The RBI's circular does not explicitly state that these notes will lose their legal tender status, implying that they will likely continue to be recognized as legal currency.

As the deadline approaches, speculations abound regarding the consequences of failing to meet it. It is essential to note that after the 2016 ban on Rs. 500 and Rs. 1,000 notes, individuals possessing more than ten of these notes faced a minimum fine of Rs. 10,000, along with the possibility of imprisonment. Although no official announcement has been made, a similar penalty is anticipated for Rs. 2,000 notes after September 30.

To combat the existence of a parallel economy, the Parliament enacted the Specified Bank Notes Act in 2017. This legislation prohibits individuals from holding more than ten pieces of old notes or more than 25 pieces of the same denomination for purposes such as study, research, or numismatics. Violating this law is deemed a punishable offense.