India

RBI Reports 98.04% Of Rs 2000 Banknotes Returned Since Withdrawal Announcement

The Reserve Bank of India (RBI) reported that 98.04% of Rs 2000 banknotes in circulation as of May 19, 2023, have now been returned. As of October 31, 2024, the value of these banknotes outside the banking system has decreased to Rs 6,970 crore. The RBI announced the withdrawal of the Rs 2000 denomination banknotes on May 19, 2023.

At that time, the total value of Rs 2000 banknotes in circulation was Rs 3.56 lakh crore. This means that less than 2% remain in circulation, even though they continue to be legal tender.

Exchange and Deposit Facilities Available

The RBI provides facilities to exchange Rs 2000 banknotes at its 19 Issue Offices. This service has been available since May 19, 2023. As of October 9, 2023, these offices also accept deposits of Rs 2000 banknotes from individuals and entities. Additionally, people can send Rs 2000 banknotes through India Post to any RBI Issue Office for credit to their bank accounts.

Background on Rs 2000 Denomination

The RBI introduced the Rs 2000 banknote in November 2016 to meet currency needs after withdrawing Rs 500 and Rs 1000 notes. The RBI stopped printing Rs 2000 banknotes in 2018-19 due to the adequate availability of other denominations. The RBI’s decision to withdraw the Rs 2000 banknotes aligns with its Clean Note Policy. This policy aims to ensure good quality banknotes for the public.

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Ajaypal Choudhary

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