The Reserve Bank of India (RBI) revealed that as of May 2, 97.76% of the Rs 2,000 currency notes in circulation since May 19, 2023, have been reintegrated into the banking system. The total value of Rs 2,000 banknotes dropped significantly from Rs 3.56 lakh crore in May 2023 to just Rs 7,961 crore by April 30, 2024, marking a substantial decline, according to RBI statements.
Clean note policy
The withdrawal of high-value Rs 2,000 denomination banknotes was part of the RBI’s clean note policy initiative, aiming to streamline the currency circulation.
Exchange facilities
Initially, the exchange and deposit of Rs 2,000 banknotes were available at all bank branches until October 7, 2023. Since May 19, 2023, individuals and entities have been able to exchange these notes at 19 RBI Issue Offices.
Post office deposits
Since October 9, 2023, RBI Issue Offices have also been accepting Rs 2,000 banknotes from individuals and entities for deposit into their bank accounts. Additionally, members of the public within the country can send Rs 2,000 banknotes via India Post to any RBI Issue Office for credit to their accounts.
Historical context
Introduced in November 2016 to expedite meeting the economy’s currency needs after the withdrawal of Rs 500 and Rs 1,000 notes, the Rs 2,000 banknotes served their purpose until other denominations became adequately available. Consequently, the printing of Rs 2,000 banknotes ceased in 2018-19.
Legal tender status
Despite the decline in circulation and cessation of printing, Rs 2,000 banknotes will remain legal tender, ensuring their continued acceptance in transactions, as affirmed by the RBI.
Also read | Heatwave threatens to burn a hole in your pocket: Rising temperatures may result in high inflation
