98.21% of Rs 2000 Banknotes Returned to Banking System, Says RBI

The Reserve Bank of India (RBI) announced on April 2, 2025, that 98.21% of Rs 2000 banknotes have been returned to the banking system, leaving only Rs 6,366 crore worth of such notes still with the public. This follows the RBI’s decision to withdraw Rs 2000 denomination banknotes from circulation, which was first announced on May 19, 2023.

Introduction

The Rs 2000 banknote, introduced in November 2016 after demonetization, is gradually being phased out. Since the RBI’s withdrawal announcement, the circulation of these notes has declined significantly. While most of the currency has been deposited or exchanged, a small percentage still remains in the hands of the public.

Decline in Rs 2000 Notes in Circulation

• As of May 19, 2023, the total value of Rs 2000 banknotes in circulation stood at Rs 3.56 lakh crore.
• By March 31, 2025, this amount declined to Rs 6,366 crore, marking a 98.21% return rate.
• The RBI confirmed that the majority of the notes have been deposited or exchanged in the banking system.

Facility for Exchange and Deposit

1. Initial Exchange and Deposit Window

• The facility to exchange and deposit Rs 2000 banknotes at all bank branches was available till October 7, 2023.

2. Continued Exchange at RBI Offices

• Since October 9, 2023, individuals and entities can deposit Rs 2000 notes at the 19 RBI issue offices.
• People can still exchange or deposit these notes by visiting the designated RBI offices.

3. Sending Rs 2000 Notes via India Post

• The India Post provides an option to send Rs 2000 notes to RBI issue offices for deposit into bank accounts.
• This service ensures accessibility for people residing in remote areas.

Legal Tender Status of Rs 2000 Banknotes

Despite being withdrawn from circulation, Rs 2000 banknotes remain legal tender. This means that they are still recognized as valid currency for transactions, though their availability is extremely limited.

Summary of Rs 2000 Banknote Withdrawal