RBI reports 97.96% Rs 2000 banknotes returned, streamlining currency circulation and boosting digital payments amid withdrawal drive

The Reserve Bank of India (RBI) has made remarkable progress in its initiative to withdraw Rs 2000 denomination banknotes from circulation. As of the latest update on August 1, 2024, an impressive 97.96% of Rs 2000 notes have been returned. The total value of Rs 2000 notes in circulation has dropped significantly from Rs 3.56 lakh crore to just Rs 7261 crore. This withdrawal was first announced on May 19, 2023, as part of the RBI's move to streamline currency in circulation and ensure the economy's liquidity management remains robust.

The public was given ample time to exchange or deposit their Rs 2000 notes, with the deadline for bank deposits and exchanges set at October 7, 2023. For those who missed this deadline, the option to deposit the notes remains available through 19 RBI Issue Offices across the country and the postal network via India Post, starting from October 9, 2023. The central bank's strategic decision reflects its commitment to improving the efficiency of India's cash circulation and aligning with global financial practices.

The Rs 2000 note was introduced in 2016 as part of the demonetisation initiative to tackle issues such as black money, counterfeit currency, and cash hoarding. However, with the increasing use of digital payments and lower denomination notes, the need for high-value currency has diminished. The continued withdrawal of the Rs 2000 note is seen as part of this transition towards a more transparent and digitally driven economy.