In a significant development, the Reserve Bank of India (RBI) has reported that 97.76% of the Rs 2,000 currency notes in circulation have returned to the banking system, marking a major milestone in the demonetization process. Only Rs 7,961 crore worth of the withdrawn notes are still held by the public.
The RBI’s statement reveals a substantial decline in the total value of Rs 2,000 banknotes in circulation, from Rs 3.56 lakh crore on 19 May 2023 to just Rs 7,961 crore as of 30 April 2024.
Despite the announcement of withdrawal, Rs 2,000 banknotes remain legal tender, enabling individuals to use them for transactions, provided that the receiving party accepts them.
The Rs 2,000 banknotes were introduced in November 2016 following the demonetization of the then-prevailing Rs 1,000 and Rs 500 banknotes. The move aimed to meet the currency demands at the time. However, the printing of Rs 2,000 banknotes was discontinued in the fiscal year 2018-19 once sufficient quantities of banknotes in other denominations became available.
Deposit and Exchange Facilities
The Reserve Bank of India (RBI) has set up procedures for the public to deposit or exchange Rs 2,000 banknotes during the transition period. These services are accessible at 19 RBI offices nationwide. Moreover, individuals have the alternative to use India Post to send Rs 2,000 banknotes to any RBI Issue Office for crediting to their bank accounts in India.
The 19 RBI offices facilitating the deposit or exchange of the banknotes are located in Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram.
These exchange facilities provide convenience for individuals to convert their Rs 2,000 banknotes into other denominations or deposit them into their bank accounts, ensuring a smooth transition in the currency system.
As the RBI continues to recover the majority of Rs 2,000 notes, the exchange facilities remain open to accommodate any remaining currency in circulation. Individuals are encouraged to utilize these services to manage their currency holdings effectively.
The progress made in recovering these high-denomination banknotes underscores the success of the demonetization initiative and reflects the public’s cooperation in adhering to the transition measures outlined by the RBI.
