Introduction: The Reserve Bank of India (RBI) initiated the withdrawal of ₹2000 denomination banknotes on May 19, 2023. As of February 1, 2024, the latest update reveals that 97.50% of these banknotes have been successfully returned, prompting an insightful analysis into the withdrawal process, its impact, and the current status.
Detailed Analysis:
1. Withdrawal Announcement and Updates: RBI, through Press Release 2023-2024/257, officially declared the withdrawal on May 19, 2023. Periodic updates, the latest being on January 01, 2024, have been vital in tracking the progress.
2. Withdrawal Procedures: Until October 07, 2023, individuals and entities could deposit or exchange ₹2000 banknotes at any bank branch. From May 19, 2023, the 19 RBI Issue Offices facilitated exchanges, and starting October 09, 2023, they accepted these banknotes for deposit.
3. Public Engagement: The withdrawal process involved active participation from the public. Individuals and entities could send ₹2000 banknotes through India Post to any RBI Issue Office, ensuring a smooth credit to their bank accounts.
4. Circulation Decline: The total value of ₹2000 banknotes in circulation decreased significantly, from ₹3.56 lakh crore on May 19, 2023, to ₹8,897 crore as of January 31, 2024. This reflects a 97.50% return rate.
5. Legal Tender Continuity: Despite the withdrawal, ₹2000 banknotes remain legal tender, maintaining their acceptance in transactions.
Conclusion: The meticulous withdrawal process by RBI has resulted in the successful return of 97.50% of ₹2000 banknotes as of February 1, 2024. This comprehensive analysis sheds light on the efficient mechanisms implemented, the public’s active involvement, and the continued legal tender status, providing a thorough understanding of the current scenario surrounding these banknotes.
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Reserve Bank of India (RBI)
Date : Feb 01, 2024
Withdrawal of ₹2000 Denomination Banknotes – Status
The Reserve Bank of India (RBI) had announced the withdrawal of ₹2000 denomination banknotes from circulation vide Press Release 2023-2024/257 dated May 19, 2023. The status of withdrawal of ₹2000 banknotes is periodically published by the RBI. The last press release in this regard was published on January 01, 2024.
2. The facility for deposit and / or exchange of the ₹2000 banknotes was available at all bank branches in the country upto October 07, 2023.
3. The facility for exchange of the ₹2000 banknotes is available at the 19 Issue Offices of the Reserve Bank (RBI Issue Offices)1 since May 19, 2023. From October 09, 2023, RBI Issue Offices are also accepting ₹2000 banknotes from individuals / entities for deposit into their bank accounts. Further, members of the public from within the country are sending ₹2000 banknotes through India Post from any post office in the country, to any of the RBI Issue Offices for credit to their bank accounts.
4. The total value of ₹2000 banknotes in circulation, which was ₹3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of ₹2000 banknotes was announced, has declined to ₹8,897 crore at the close of business on January 31, 2024. Thus, 97.50% of the ₹2000 banknotes in circulation as on May 19, 2023, has since been returned.
5. The ₹2000 banknotes continue to be legal tender.
(Yogesh Dayal)
Chief General Manager
Press Release: 2023-2024/1785
1 Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram
