“Public still holds Rs 8470 crore worth of Rs 2000 notes, reports RBI.”
“RBI reports 97.62 percent of Rs 2,000 currency notes returned by the public.”
“RBI in Mumbai: Almost all Rs 2000 notes back in banks, public still holds Rs 8,470 crore.”
The Reserve Bank of India (RBI) announced the withdrawal of Rs 2000 banknotes on May 19, 2023. At that time, the total value of these notes in circulation was Rs 3.56 lakh crore. As of February 29, 2024, this value has decreased significantly to Rs 8,470 crore.
This decline indicates that a large portion of the Rs 2000 banknotes have been returned to the banking system or withdrawn from circulation. The reduction in the value of these notes suggests a shift in the currency composition within the economy.
The RBI’s decision to withdraw the Rs 2000 banknotes might have been aimed at managing the currency flow, curbing black money, or encouraging the usage of smaller denomination notes. This move also aligns with the government’s efforts to promote digital transactions and a more transparent financial system.
The significant decrease in the value of Rs 2000 banknotes highlights a shift in the currency landscape, reflecting changes in public usage and monetary policies implemented by the RBI.
As of May 19, 2023, 97.62% of Rs 2000 banknotes have been returned. The RBI confirms that Rs 2000 notes remain legal tender. Individuals can deposit/exchange these notes at 19 RBI offices nationwide. Additionally, they can send Rs 2000 notes via India Post to RBI Issue Offices for credit to their Indian bank accounts.
Initially, the public and entities holding Rs 2000 notes were instructed to exchange or deposit them in bank accounts by September 30, 2023. However, this deadline was later extended to October 7, 2023. Services for deposit and exchange at bank branches ceased on October 7, 2023.
From October 8, 2023, individuals have had the option to either exchange the currency or have the equivalent amount credited to their bank accounts. This facility is available at the 19 RBI offices located across the country.
The 19 RBI offices where people can deposit or exchange the Rs 2000 banknotes are in Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram.
This measure aims to provide convenience to the public while ensuring the smooth transition of the currency change process. It allows individuals ample opportunity to manage their Rs 2000 notes in a way that suits them best, whether through immediate exchange or credit to their bank accounts.
The RBI’s decision to discontinue deposit and exchange services at bank branches after October 7, 2023, emphasizes the importance of utilizing the designated RBI offices for transactions involving Rs 2000 banknotes. This ensures efficient handling of the currency transition process and helps individuals comply with the guidelines set forth by the central bank.
The Rs 2000 banknotes were introduced in November 2016, as part of the demonetization process that replaced the then-existing Rs 1000 and Rs 500 notes.
The introduction of the Rs 2000 notes was a strategic step to manage the currency supply and transition during the demonetization period. These high-denomination notes were intended to facilitate large transactions while the new currency system was being implemented. However, with the recent decision to withdraw these notes from circulation, the currency landscape is undergoing another significant change in the country’s monetary policy.