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