A lady buys grocery worth Rs.350 from a shop

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A very simple but confusing puzzle.

A lady buys grocery worth Rs.350 from a shop. (shopkeeper selling the goods with zero profit)

The lady gives him 2000 rs note. The shopkeeper gets the change from next shop, keeps 350 for himself and returns Rs.1650 to d lady.

Later the shopkeeper of the next shop comes with the Rs.2000 note saying "duplicate" and takes his money back.
"How much LOSS did the shopkeeper face ?"

A. 350
B. 1650
C. 2350
D. 3650
E. 4000
F. Other(Specify Amount)
Simple yet confusing n challenging.

Click here for Answer

Answer is 2000.
Will let you give an explanation in the comments.