The Reserve Bank of India (RBI) revealed on February 1 that 97.50% of the Rs 2,000 currency notes in circulation as of May 19, 2023, have been successfully reintegrated into the banking system. This development follows the government’s decision to withdraw the high-denomination bills as part of the clean note policy.
Withdrawal Statistics
- Total Value Decline: The total value of Rs 2,000 banknotes in circulation decreased from Rs 3.56 lakh crore on May 19, 2023, to Rs 8,897 crore by January 31, 2024.
- Withdrawal Initiation: The withdrawal of Rs 2,000 banknotes was announced on May 19, 2023.
- Deposit and Exchange Period: Initially, all bank branches facilitated the deposit and/or exchange of these notes until October 7, 2023.
- RBI Issue Offices: Since May 19, 2023, 19 RBI Issue Offices started accepting Rs 2,000 banknotes for exchange, and from October 9, 2023, they also accept deposits from individuals and entities.
- India Post Collaboration: People can send Rs 2,000 banknotes through India Post to any RBI Issue Office for crediting to their bank accounts.
Background
The Rs 2,000 banknotes were introduced in November 2016 to address the urgent currency requirements after the withdrawal of Rs 500 and Rs 1,000 notes. Printing of Rs 2,000 notes ceased in 2018-19 once an ample supply of other denominations became available. Despite this, Rs 2,000 notes remain legal tender, as confirmed by the RBI.