98 per cent of Rs 2000 banknotes withdrawn from circulation: RBI

The Reserve Bank of India (RBI) has announced a significant reduction in the circulation of Rs 2000 denomination banknotes, with 98.08 per cent of the total value in circulation as of May 19, 2023, now returned. 

As of November 29, 2024, the value of ₹2000 banknotes in circulation stands at ₹6,839 crore, a steep decline from ₹3.56 lakh crore recorded when the withdrawal was first announced.

The withdrawal of ₹2000 banknotes was initiated through an RBI notification on May 19, 2023. While the notes remain legal tender, the RBI has taken steps to phase them out of active circulation. Initially, the facility to deposit and exchange these banknotes was available at all bank branches until October 7, 2023. 

Since October 9, 2023, exchanges have been conducted exclusively at the 19 RBI Issue Offices, with an additional provision allowing individuals to send ₹2000 banknotes through India Post to the RBI Issue Offices for credit to their bank accounts.

Also Read: EPFO auto claim settlement limit increased to Rs 1 lakh

The RBI had issued periodic updates on the withdrawal process, with the last press release in this regard published on November 4, 2024. The rapid return of the ₹2000 notes underscores the public's compliance with the central bank's withdrawal initiative.

Despite their reduced circulation, the ₹2000 banknotes continue to hold their status as legal tender, allowing for their use in transactions where accepted.

The withdrawal is part of the RBI’s broader efforts to recalibrate the currency system in line with evolving economic needs, aiming to streamline monetary operations and ensure efficient cash management.