The Reserve Bank of India (RBI) has achieved a significant milestone in the withdrawal of Rs 2,000 denomination banknotes, with a staggering 97.26% of the total value returned as of November 30, 2023.
The withdrawal, initially announced on May 19, 2023, saw the discontinuation of Rs 2,000 banknotes from circulation. In an effort to facilitate the transition, the RBI provided a window for deposit and exchange at all bank branches nationwide, originally set to expire on September 30, 2023. However, recognizing the logistical challenges, the deadline was later extended until October 7, 2023.
The 19 Issue Offices of the RBI were actively involved in the process, offering an exchange facility from May 19, 2023. Starting October 9, 2023, these offices expanded their role to not only exchange Rs 2,000 banknotes across counters but also accept them for deposit into individual and entity bank accounts. To further streamline the process, the public was allowed to send ₹2000 banknotes through India Post from any post office in the country to RBI Issue Offices, ensuring credit to their bank accounts within India.
As of the announcement date in May, the total value of Rs 2,000 banknotes in circulation amounted to Rs 3.56 lakh crore. However, with the latest update as of November 30, 2023, the circulation value has significantly decreased to Rs 9,760 crore. This means that a remarkable 97.26% of the Rs 2,000 banknotes in circulation as of May 19, 2023, have now been successfully returned to the banking system.
Despite the withdrawal, the Rs 2,000 banknotes continue to remain legal tender, providing further reassurance to the public.
