The Reserve Bank of India (RBI) has been a cornerstone in regulating the monetary policy of the country, ensuring the economic stability of India. One of their major decisions announced recently pertains to the withdrawal of ₹2000 denomination banknotes from circulation. This article aims to provide a comprehensive update on the status of this withdrawal, presenting key statistics and action points for the public.
Initial Announcement and Decline: The RBI announced the withdrawal of ₹2000 banknotes on May 19, 2023, as indicated in their Press Release 2023-2024/257. The total value of these notes in circulation was ₹3.62 lakh crore as of March 31, 2023, which declined to ₹3.56 lakh crore by May 19, 2023.
Current Status: According to a subsequent press release from the RBI dated August 1, 2023, the total value of ₹2000 banknotes that have been received back from circulation is ₹3.32 lakh crore as of August 31, 2023. This leaves ₹0.24 lakh crore still in circulation, meaning that 93% of these banknotes have already been returned.
Composition of Returned Banknotes: Data from major banks reveal that about 87% of the returned ₹2000 notes were in the form of deposits, and around 13% were exchanged for other denominations. This suggests that the majority of people are choosing to deposit their ₹2000 notes rather than exchange them.
Public Advisory: The RBI has advised the public to deposit or exchange the remaining ₹2000 notes by September 30, 2023. Failure to comply may result in the notes becoming non-legal tender, and therefore, useless for transactions.
Conclusion: The Reserve Bank of India’s decision to withdraw ₹2000 banknotes has been highly effective, with 93% of these notes already returned from circulation. The public should take note of the approaching deadline of September 30, 2023, and act accordingly to avoid any inconvenience. This measure, taken by the RBI, signifies the continuous efforts to streamline currency circulation and maintain economic stability in the country.
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Reserve Bank of India
Withdrawal of ₹2000 Denomination Banknotes – Status
Date : Sep 01, 2023
The Reserve Bank of India had announced the withdrawal of ₹2000 banknotes from circulation vide Press Release 2023-2024/257 dated May 19, 2023. The total value of ₹2000 banknotes in circulation, which amounted to ₹3.62 lakh crore on March 31, 2023 had declined to ₹3.56 lakh crore as at the close of business on May 19, 2023. The status of withdrawal of ₹2000 banknotes as at July end was published by the RBI vide Press Release No. 2023-2024/682 dated August 01, 2023.
According to the data received from the banks, the total value of ₹2000 banknotes received back from circulation is ₹3.32 lakh crore up to August 31, 2023. Consequently, ₹2000 banknotes in circulation as at the close of business on August 31, 2023 stood at ₹0.24 lakh crore. Thus, 93% of the ₹2000 banknotes in circulation as on May 19, 2023, have since been returned.
Data collected from major banks indicates that out of the total banknotes in ₹2000 denomination received back from circulation, about 87% is in the form of deposits and the remaining around 13% has been exchanged into other denomination banknotes.
Members of the public are requested to utilise the remaining period until September 30, 2023 to deposit and/or exchange the ₹2000 banknotes held with them.
(Yogesh Dayal)
Chief General Manager
Press Release: 2023-2024/851
