97.76% of ₹2,000 bank notes already returned, says RBI

Around 97.76% of the ₹2000 banknotes in circulation as of May 19, 2023, have already been returned, said the Reserve Bank of India (RBI) in an announcement made on Thursday. The central bank added that ₹2000 banknotes will continue to be legal tender.

Besides, the total value of ₹2,000 banknotes in circulation, which was ₹3.56 lakh crore at the close of business on May 19 last year, when the withdrawal of ₹2000 banknotes was announced, has now fallen to ₹7,961 crore on April 30, 2024, the announcement further states.

It is important to note that the banking regulator had announced the withdrawal of ₹2000 denomination banknotes from circulation on May 19, 2023. 

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The last announcement with regards to ₹2,000 currency notes was made on March 1, 2024, when it was revealed that 97.67% of the banknotes in circulation as of May 19, 2023, were returned.

Notably, the facility for deposit and exchange of currency notes was available at all bank branches up to October 7, 2023.

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Additionally, the facility for exchange of the ₹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 ₹2000 banknotes from individuals/entities for deposit into their bank accounts. 

Further, members of the public can send ₹2000 banknotes through India Post from any post office within the country to any of the RBI Issue Offices for credit to their bank accounts.

Why  ₹2000 banknotes discontinued?

While announcing the discontinuation of notes on May 19, 2023, RBI told the stakeholders that around 89% of the ₹2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life span of 4 to 5 years. Hence, as a part of the “Clean Note Policy", the RBI decided to withdraw the ₹2,000 denomination banknotes from circulation.

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The public was asked to deposit banknotes.

The ₹2000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time.