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RBI Announces Withdrawal of ₹2000 Banknotes: Over 97% Return of Denomination

Withdrawal of ₹2000 Banknotes

The Reserve Bank of India (RBI) has updated the status of the withdrawal of ₹2000 denomination banknotes, stating that 97.50% of the banknotes in circulation have been returned. The withdrawal of ₹2000 banknotes, which was announced in May 2023, has seen significant progress in the past few months.

Withdrawal of ₹2000 Banknotes : Highlights

  • The Reserve Bank of India (RBI) has announced the withdrawal of ₹2000 banknotes, with 97.50% of the denomination being returned as of January 31, 2024.
  • Individuals and entities were able to exchange or deposit ₹2000 banknotes at designated RBI Issue Offices since May 19, 2023.
  • Despite the withdrawal, ₹2000 banknotes continue to be legal tender and can still be used for transactions.

According to the latest press release from RBI, the facility for deposit and exchange of ₹2000 banknotes was available at all bank branches across the country until October 7, 2023. However, from that point onwards, individuals and entities were required to visit the 19 designated RBI Issue Offices for the exchange or deposit of ₹2000 banknotes.

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Since May 19, 2023, the 19 RBI Issue Offices have been accepting ₹2000 banknotes for exchange. Starting from October 9, 2023, these offices also began accepting ₹2000 banknotes for deposit into individuals’ and entities’ bank accounts. Additionally, members of the public have the option to send their ₹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.

As of January 31, 2024, the total value of ₹2000 banknotes in circulation has declined to ₹8,897 crore. This represents a significant decrease from the ₹3.56 lakh crore value of ₹2000 banknotes in circulation when the withdrawal was initiated. The reduction indicates that 97.50% of the ₹2000 banknotes in circulation as of May 19, 2023, have since been returned.

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It is important to note that despite the withdrawal, the ₹2000 banknotes continue to be legal tender. Individuals are still able to use them for transactions and businesses are obliged to accept them along with other denominations.

The withdrawal of ₹2000 banknotes is part of the RBI’s ongoing efforts to regulate and manage the currency in circulation. The updated status reflects the success of the withdrawal process thus far, with a substantial majority of the denomination being returned. As the RBI continues to monitor and manage the currency supply, individuals and entities are encouraged to avail themselves of the designated exchange and deposit facilities to ensure a smooth transition during this period.

This update from the RBI sheds light on the progress made in the withdrawal of ₹2000 banknotes, providing a clearer picture of the current status and showcasing the successful return of a significant portion of the denomination.

Source: https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=57235

Last Updated on 6 months

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