RBI says 97.38% of Rs 2,000 currency notes back in system

The Reserve Bank of India (RBI) on January 1 said that 97.38 percent of the Rs 2,000 currency notes in circulation as of May 19, 2023, have returned to the banking system.

The total value of such banknotes in circulation declined to Rs 9,330 crore at the close of business on December 29, 2023, from Rs 3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of Rs 2,000 banknotes was announced, the RBI said in a statement.

The central bank announced the withdrawal of the high-value denomination banknotes from circulation as part of its clean note policy.

The facility for deposit and / or exchange of the Rs 2000 banknotes was available at all bank branches in the country upto October 07, 2023.

The facility for exchange of the Rs 2000 banknotes is available at the 19 Issue Offices of the Reserve Bank (RBI Issue Offices)1 since May 19, 2023.

From October 09, 2023, RBI Issue Offices are also accepting Rs 2000 banknotes from individuals / entities for deposit into their bank accounts, RBI said in a release.

Further, members of the public from within the country are sending Rs 2000 banknotes through India Post from any post office in the country, to any of the RBI Issue Offices for credit to their bank accounts.

The RBI had introduced Rs 2,000 banknotes in November 2016 to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time.

The objective of introducing Rs 2,000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of Rs 2,000 banknotes was stopped in 2018-19.

These notes will continue as legal tender, the RBI said.

The Rs 2000 banknotes continue to be legal tender, RBI said in a release.