The Reserve Bank of India (RBI) announced that an impressive 97.82% of the Rs 2,000 denomination banknotes have been returned to the banking system. This update follows the RBI’s decision to withdraw these high-denomination notes from circulation, a move first announced on May 19, 2023.
As of May 19, 2023, the total value of Rs 2,000 banknotes in circulation stood at Rs 3.56 lakh crore. By the close of business on May 31, 2024, this figure had dramatically reduced to Rs 7,755 crore. ‘Thus, 97.82 per cent of the Rs 2,000 banknotes in circulation as on May 19, 2023, has since been returned,’ the central bank stated.
The withdrawal process has been facilitated through several channels. Initially, the facility for deposit and/or exchange of the Rs 2,000 banknotes was made available at all bank branches across the country until October 7, 2023. Post this period, the exchange continued to be offered at the 19 issue offices of the RBI.
From October 9, 2023, these RBI issue offices have also been accepting Rs 2,000 banknotes from individuals and entities for deposit into their bank accounts. Furthermore, the public can send these banknotes through India Post from any post office in the country to any RBI issue office for credit to their bank accounts.
The 19 RBI offices involved in the deposit and exchange process are located in Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram.
The Rs 2,000 banknotes were initially introduced in November 2016 as part of the government’s demonetization drive, which saw the previous Rs 1,000 and Rs 500 banknotes being withdrawn from circulation. The move was aimed at combating black money, counterfeit currency, and promoting a shift towards a cashless economy.
With nearly all Rs 2,000 notes now back in the banking system, the RBI’s strategic withdrawal appears to have been effectively executed, paving the way for further financial reforms and stability.