The Reserve Bank of India (RBI) on August 1 said Rs 3.14 lakh crore worth of Rs 2,000 banknotes, or 88% available for use, have returned to the financial framework as on July 31. Thus, Rs 2,000 banknotes available for use as at the end of business on July 31 stayed at Rs 0.42 lakh crore, the release said. According to the release, 13% of the total notes returned from circulation have been converted into other denominations, while 87 percent of the notes have been used as deposits.
"Reserve Bank of India (RBI) had announced the withdrawal of Rs 2000 banknotes from circulation. The total value of Rs 2000 banknotes in circulation, which amounted to Rs 3.62 lakh crore on March 31, 2023 had declined to Rs 3.56 lakh crore as at the close of business on May 19, 2023. According to the data received from the banks, the total value of Rs 2000 banknotes received back from circulation is Rs 3.14 lakh crore up to July 31, 2023. Consequently, Rs 2000 banknotes in circulation as at the close of business on July 31 stood at Rs 0.42 lakh crore. Thus, 88% of the Rs 2000 banknotes in circulation as on May 19, 2023, have since been returned," said RBI.
The central bank asked people in general to use the leftover time span to trade or store Rs 2,000 notes. On May 19, the bank declared the withdrawal of Rs 2,000 money bills from circulation. "Considering the abovementioned, and in compatibility of the 'Clean Note Policy' of the Reserve Bank of India, it has been chosen to pull out the Rs 2,000 denomination banknotes from dissemination," the RBI said on May 19.
On the other hand, on May 24, the Governor of the RBI stated that the central bank had made the decision to stop issuing Rs 2,000 currency notes because this denomination was not widely used and high-denomination notes could cause collateral problems. He stated, "In our surveys, we found out that Rs 2,000 notes were not used at all... It was used, but not frequently."
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