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Withdrawal of ₹2000 denomination currency notes by RBI

₹2000 denomination banknotes were introduced on November 10, 2016, under Section 24(1) of Reserve Bank of India (RBI) Act, 1934, to meet the currency requirement of the economy after the withdrawal of ₹500 and ₹1000 banknotes in circulation at that time.

  • 89% of ₹2000 denomination notes were issued prior to March 2017 and are close to the end of their useful life (4-5 years).
  • A Pan-India survey conducted by RBI showed that ₹2000 denomination banknotes are no longer preferred for transactions.

RBI’s Decision to Withdraw:

  • In line with RBI’s “Clean Note Policy” and considering the declining preference and useful life of ₹2000 denomination notes, RBI decided to withdraw them from circulation.

Data on ₹2000 Denomination Banknotes in Circulation:

Year Volume (crore pieces) Value (₹ crore)
2016
2017 329 6,57,063
2018 336 6,72,642
2019 329 6,58,199
2020 274 5,47,952
2021 245 4,90,195
2022 214 4,28,394
2023 181 3,62,220

Data on ₹2000 Denomination Banknotes Post Withdrawal:

As on May 19, 2023 Circulation: Volume (crore pieces) Circulation: Value (₹ crore) Banknotes Returned: Volume (crore pieces) Banknotes Returned: Value (₹ crore)
177.93 3.56
As on June 30, 2023 41.80 0.84 136.13 2.72

Data on Total Deposits and Gross Loans and Advances (Scheduled Commercial Banks):

As on Total Deposits Outstanding (in Rs crore) Growth YoY (in %) Gross Loans and Advances Outstanding (in Rs crore) Growth YoY (in %)
31 March, 2022 1,71,72,755 10.17 1,27,50,006 11.85
30 June, 2022 1,71,77,836 10.05 1,30,94,857 15.53
30 September, 2022 1,77,42,610 10.84 1,36,92,970 18.63
31 December, 2022 1,81,43,432 11.27 1,41,30,450 16.77
31 March, 2023 1,90,56,113 10.97 1,47,57,129 15.74

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