The Reserve Bank of India (RBI) announced on Thursday that a significant portion, specifically 97.76%, of the Rs 2,000 currency notes in circulation as of May 19, 2023, have been returned to the banking system. As a result, the total value of these banknotes in circulation decreased to Rs 7,961 crore by the close of business on April 30, 2024, compared to Rs 3.56 lakh crore at the end of business on May 19, 2023, when the withdrawal of Rs 2,000 banknotes was initiated.
This withdrawal of high-value denomination banknotes was part of the RBI's clean note policy, aimed at managing the circulation of currency efficiently. Individuals were given the option to deposit or exchange Rs 2,000 banknotes at all bank branches nationwide until October 7, 2023. Subsequently, the exchange facility has been available exclusively at the 19 Issue Offices of the Reserve Bank (RBI Issue Offices) since May 19, 2023.
Furthermore, from October 9, 2023, the RBI's Issue Offices started accepting Rs 2,000 banknotes from individuals and entities for deposit into their bank accounts. Additionally, members of the public across the country can send Rs 2,000 banknotes through India Post from any post office to any RBI Issue Office for credit to their bank accounts.
The introduction of Rs 2,000 banknotes in November 2016 aimed to address the currency demands of the economy following the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time. However, the printing of Rs 2,000 banknotes was discontinued in the fiscal year 2018-19 once sufficient quantities of banknotes in other denominations became available, successfully achieving the intended objective.
Despite the withdrawal and discontinuation of printing, existing Rs 2,000 banknotes will continue to remain valid as legal tender, ensuring a smooth transition for individuals and businesses alike.
