The Reserve Bank of India (RBI) has released a statement revealing that nearly 97.62 per cent of the Rs 2,000 denomination bank notes have returned to the banking system. As of February 29, 2024, approximately Rs 8,470 crore worth of the withdrawn Rs 2,000 notes are still held by the public. The withdrawal of Rs 2,000 denomination bank notes from circulation was announced by the RBI on May 19, 2023.
Decline in Circulation
According to the RBI’s statement, the total value of Rs 2,000 banknotes in circulation, which stood at Rs 3.56 lakh crore as of May 19, 2023, has significantly declined to Rs 8,470 crore by February 29, 2024. This indicates that the majority of the Rs 2,000 banknotes in circulation at the time of the withdrawal announcement have been returned to the banking system.
Legal Tender Status
Despite the withdrawal announcement, the RBI emphasizes that Rs 2,000 banknotes continue to be legal tender. Individuals can still deposit and/or exchange these notes at any of the 19 RBI offices located across the country. Additionally, individuals have the option to send Rs 2,000 banknotes through India Post from any post office to any RBI Issue Office for credit to their bank accounts in India.
Exchange Procedures
Initially, individuals and entities holding Rs 2,000 banknotes were instructed to exchange or deposit them in bank accounts by September 30, 2023. This deadline was later extended to October 7, 2023. Following the discontinuation of deposit and exchange services at bank branches on October 7, 2023, individuals were provided with the option of exchanging the currency or having the equivalent sum credited to their bank accounts at the 19 RBI offices across India.
List of RBI Offices
The 19 RBI offices facilitating the depositing/exchanging of Rs 2,000 banknotes are located in major cities across the country, including Ahmedabad, Bengaluru, Mumbai, New Delhi, Chennai, Kolkata, and Hyderabad, among others.
Background
The Rs 2,000 banknotes were introduced in November 2016, following the demonetisation of the then-prevailing Rs 1,000 and Rs 500 banknotes. Since then, the RBI has taken various measures to manage the circulation and withdrawal of these notes in the Indian economy.
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