In a significant development, the Reserve Bank of India (RBI) has revealed that more than 97% of the ₹2,000 banknotes in circulation have made their way back into the banking system, leaving just ₹10,000 crore worth of such notes still in public circulation.
As per the RBI’s recent statement, the total value of ₹2,000 banknotes in circulation, which amounted to ₹3.56 lakh crore as of May 19, 2023, when the decision to withdraw these notes was announced, has dwindled to ₹0.10 lakh crore as of October 31, 2023.
The RBI’s move to withdraw the ₹2,000 denomination banknotes was part of its “Clean Note Policy.” The central bank not only urged other banks to refrain from issuing ₹2,000 banknotes but also encouraged the public to deposit these notes while confirming that they would remain a legal tender.
Furthermore, the RBI emphasized that the objective behind introducing ₹2,000 banknotes had been achieved once banknotes in other denominations became readily available. Consequently, the printing of ₹2,000 banknotes ceased during the fiscal year 2018-19.
In line with this, individuals who possessed ₹2,000 banknotes deposited them into their bank accounts and/or exchanged them for banknotes of different denominations at any bank branch. With the October 7 deadline, following one extension, now past, banks have ceased accepting ₹2,000 banknotes for crediting to accounts or exchanging for notes of other denominations.
However, it’s important to note that ₹2,000 banknotes can still be presented at the 19 Regional Offices of RBI with Issue Departments (RBI Issue offices) for crediting to bank accounts in India or exchanging for other denominations. This update from the RBI reflects a significant shift in the circulation of high-denomination banknotes, signaling changes in India’s currency landscape.