Nearly 98% of ₹2,000 currency notes back in system: RBI
What's the story
A staggering 97.82% of ₹2,000 currency notes in circulation as of May 19, 2023, have been returned to the banking system, as per the Reserve Bank of India (RBI).
The total value of these banknotes in circulation dropped to ₹7,755 crore on May 31, 2024 from a high of ₹3.56 lakh crore on May 19, 2023.
This significant reduction is part of the central bank's clean note policy which led to the withdrawal of these high-value denomination banknotes from circulation.
Deposit scheme
Exchange facility for ₹2,000 notes extended nationwide
The RBI made provisions for the deposit and exchange of the ₹2,000 banknotes at all bank branches across the country until October 7, 2023.
From May 19, 2023 onwards, these notes could also be exchanged at any of the Reserve Bank's 19 Issue Offices.
Starting October 9, 2023, these offices began accepting ₹2,000 notes from individuals and entities for deposit into their respective bank accounts.
Postal deposits
Postal services facilitate return of ₹2,000 notes
In addition to direct deposits at bank branches and RBI Issue Offices, the public within India had another option for returning their ₹2,000 notes.
They could send these banknotes through India Post from any post office in the country to any RBI Issue Office.
This service facilitated the credit of these funds directly into their respective bank accounts, further aiding in the return of these high-value denomination notes to the banking system.
Legal status
₹2,000 notes remain legal tender despite withdrawal
The RBI initially introduced the ₹2,000 banknotes in November 2016 to swiftly meet the currency requirement of the economy after the demonetization of all ₹500 and ₹1,000 banknotes in circulation at that time.
The printing of these notes was halted in the fiscal year of 2018-19 once other denominations became adequately available.
However, despite their withdrawal from circulation and cessation in printing, these ₹2,000 banknotes continue to be legal tender, as per the RBI's release.