The Reserve Bank of India (RBI) announced on December 1 that an impressive 97.26% of the Rs 2,000 banknotes in circulation have been returned to the banking system. This marks a significant milestone in the RBI’s efforts to withdraw these high-denomination notes from circulation.
The total value of Rs 2,000 banknotes, which stood at Rs 3.56 lakh crore on May 19, 2023, the date when the withdrawal of these notes was announced, has now decreased to Rs 9,760 crore as of November 30, 2023. This substantial reduction highlights the effectiveness of the RBI’s measures.
The RBI’s decision to withdraw Rs 2,000 banknotes was part of its clean note policy, aimed at combating counterfeiting and curbing the use of illicit funds. Initially, the facility for depositing and exchanging these notes was available at all bank branches nationwide until September 30, 2023. This deadline was subsequently extended to October 7, 2023.
In addition to bank branches, individuals could also exchange Rs 2,000 banknotes at the 19 Issue Offices of the RBI. Since October 9, 2023, these Issue Offices have been accepting Rs 2,000 banknotes for deposit into bank accounts, further facilitating the process.
Members of the public can also send Rs 2,000 banknotes through India Post from any post office in the country to any of the RBI Issue Offices for credit to their bank accounts in India. This provides an additional convenient option for returning these notes.
The introduction of Rs 2,000 banknotes in November 2016 was intended to meet the economy’s urgent currency requirement following the demonetization of Rs 500 and Rs 1,000 notes. Once banknotes in other denominations became sufficiently available, the printing of Rs 2,000 notes was discontinued in 2018-19.
Despite their withdrawal from circulation, Rs 2,000 banknotes will continue to be legal tender, the RBI has clarified. This means that these notes can still be used for all transactions.
