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The Reserve Bank of India (RBI) stated that as of March 29, 2024, 97.69 per cent of the ₹2,000 banknotes in circulation as of May 19, 2023, had been returned, with the remaining notes remaining legal tender.
The central bank provided an update on the withdrawal of ₹2,000 denomination banknotes, highlighting that their total value in circulation decreased from ₹3.56 lakh crore on May 19, 2023, to ₹8202 crore on March 29, 2024.
As per a statement from the central bank, exchange facilities for ₹2,000 banknotes have been available at RBI’s 19 Issue Offices since May 19, 2023.
Since October 9, 2023, RBI Issue Offices are also accepting ₹2,000 banknotes from individuals/entities for depositing into their bank accounts.
Further, members of the public are sending ₹2,000 banknotes through India Post from any post office within the country, to any of the RBI Issue Offices for credit to their bank accounts.
The RBI initiated the exercise for withdrawal of ₹2,000 banknotes on May 19, 2023, as the objective of introducing them (to meet the currency requirement of the economy after the withdrawal of legal tender status of all ₹500 and ₹1,000 banknotes in circulation in the November-December 2016 period) was met once banknotes in other denominations became available in adequate quantities.
“About 89 per cent of the ₹2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of four to five years. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.”
“In view of the above, and in pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw the ₹2,000 denomination banknotes from circulation,” the central bank said in a statement on May 19, 2023.
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