97.38% of the Rs 2000 banknotes have been returned since withdrawal: RBI

The Reserve Bank of India (RBI) announced on Monday that nearly all Rs 2000 banknotes introduced in 2016 have now been withdrawn from circulation. According to the RBI's latest media release, a staggering 97.38% of Rs 2000 notes that were in circulation as of May 19, 2023, have been returned to the central bank. In a move towards a dramatic decline in the total value of these high-denomination notes, from a peak of Rs 3.56 lakh crore in May 2023 to just Rs 9,330 crore as of December 29, 2023.

Withdrawal of ₹2000 Denomination Banknotes – Statushttps://t.co/PWgH7Gujw4

— ReserveBankOfIndia (@RBI) January 1, 2024

Withdrawal status of Rs 2000 denomination banknotes

The withdrawal initiative, initially announced in May 2023, aimed to address concerns surrounding black money and counterfeit currency. While Rs 2000 notes retain their status as legal tender, the RBI has been actively encouraging their deposit or exchange through designated banks and RBI offices. The deadline for this exchange process at banks has now passed, but people can still exchange their Rs 2000 notes at 19 RBI Issue offices across the country.

The official statement release read, "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 from within the country are sending ₹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."

Furthermore, it added, "The total value of ₹2000 banknotes in circulation, which was ₹3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of ₹2000 banknotes was announced, has declined to ₹9,330 crore at the close of business on December 29, 2023. Thus, 97.38% of the ₹2000 banknotes in circulation as of May 19, 2023, has since been returned."

The central bank has also reiterated its commitment to ensuring a smooth transition and addressing any queries or concerns related to the withdrawal process. The statement concluded by stating, "The ₹2000 banknotes continue to be legal tender."