The Reserve Bank of India (RBI) has confirmed that the banking system has reabsorbed a significant 97.26% of ₹2,000 banknotes that were in circulation as of May 19, 2023. This comes after the RBI’s decision to withdraw the ₹2,000 denomination notes, initially announced as a part of their clean note policy.
What Happened? According to an RBI press release, as of November 30, 2023, the value of these notes in circulation has plummeted from a substantial ₹3.56 lakh crore to a mere ₹9,760 crore. The move to phase out the ₹2000 notes began on May 19, 2023, with a facility for deposit and exchange available at bank branches nationwide until October 7, 2023, following an extension from the initial September 30 deadline.
Additionally, the RBI’s 19 Issue Offices have been actively involved in the exchange process from the onset. Post-October 9, these offices not only continued the exchange service but also accepted deposits of these notes into individual or entity bank accounts.
In a unique initiative, the public now has the option to send ₹2,000 banknotes via India Post to any RBI Issue Office for crediting into their bank accounts. This move aligns with RBI’s intent to streamline currency circulation and maintain the integrity of banknotes.
Are ₹2,000 notes still legal tender? The ₹2,000 note, introduced in November 2016, strategically responded to the sudden demonetization of ₹500 and ₹1000 notes.
Its primary goal was to rapidly meet the currency demands of the economy. However, once the supply of other denominations stabilized, the printing of ₹2,000 notes ceased in 2018-19.
Despite these changes, the RBI continues to recognize the ₹2,000 notes as legal tender, ensuring their validity in the economic landscape.
