Mumbai, Nov 4 (IANS) – The Reserve Bank of India (RBI) reported that 98.04% of the ₹2000 banknotes that were in circulation as of May 19, 2023, have now been returned. As of October 31, 2024, only ₹6, 970 crore worth of these notes remain outside the banking system, marking significant progress in the withdrawal process announced last year.
Initially, the total value of ₹2000 notes in circulation was ₹3.56 lakh crore when the withdrawal plan was initiated in May 2023, leaving less than 2% still in circulation. Despite the withdrawal process, the ₹2000 notes continue to be recognized as legal tender.
The facility for exchanging ₹2000 notes remains available at the 19 RBI Issue Offices. Starting October 9, 2023, individuals and entities have also been permitted to deposit these notes directly into their bank accounts. Additionally, citizens can mail their ₹2000 notes from any post office to RBI Issue Offices for bank credit, according to the official statement.
The RBI initially announced the withdrawal of the ₹2000 denomination on May 19, 2023, and has since provided periodic updates on the progress. The last update was released on October 1, 2024. While deposit or exchange facilities were previously available across all bank branches until October 7, 2023, the process is now primarily managed by RBI Issue Offices.
The ₹2000 denomination was first introduced in November 2016 to meet urgent currency needs after the demonetization of ₹500 and ₹1000 notes. However, printing of the ₹2000 notes ceased in 2018-19, as other denominations became available in sufficient quantities to support the economy. Most ₹2000 notes in circulation were issued before March 2017 and have since reached their estimated lifespan of 4-5 years.
The decision to withdraw the notes aligns with the RBI's Clean Note Policy, which seeks to maintain high-quality currency for the public. The RBI observed that ₹2000 notes were rarely used in daily transactions, further supporting the decision to phase them out as smaller denominations are deemed sufficient for public currency needs.
This update underscores the RBI's ongoing efforts to enhance currency quality and streamline the circulation of commonly used denominations.