The total value of ₹2,000 banknotes in circulation, which was ₹3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of ₹2,000 banknotes was announced, has declined to ₹7,581 crore at the close of business on June 28, 2024.

“Thus, 97.87% of the ₹2,000 banknotes in circulation as on May 19, 2023, has since been returned,” the Reserve Bank of India (RBI) reported on July 1. “The ₹2,000 banknotes continue to be legal tender,” it said.

The RBI had announced the withdrawal of ₹2,000 denomination banknotes from circulation on May 19, 2023.

The facility for deposit and / or exchange of the ₹2000 banknotes was available at all bank branches in the country upto October 07, 2023.

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 are sending ₹2000 banknotes through India Post from any post office within the country, to any of the RBI Issue Offices for credit to their bank accounts.

The RBI had announced the withdrawal of ₹2,000 denomination banknotes from circulation on May 19, 2023. File
| Photo Credit: Reuters

The total value of ₹2,000 banknotes in circulation, which was ₹3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of ₹2,000 banknotes was announced, has declined to ₹7,581 crore at the close of business on June 28, 2024.

“Thus, 97.87% of the ₹2,000 banknotes in circulation as on May 19, 2023, has since been returned,” the Reserve Bank of India (RBI) reported on July 1. “The ₹2,000 banknotes continue to be legal tender,” it said.

The RBI had announced the withdrawal of ₹2,000 denomination banknotes from circulation on May 19, 2023.

The facility for deposit and / or exchange of the ₹2,000 banknotes was available at all bank branches in the country upto October 07, 2023.

The facility for exchange of the ₹2,000 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 are sending ₹2,000 banknotes through India Post from any post office within the country, to any of the RBI Issue Offices for credit to their bank accounts.

 On May 19, 2023, RBI announced withdrawal of ₹2,000 denomination banknotes from circulation. File.
| Photo Credit: R. RAGU

The growth in currency in circulation decelerated to 3.7% for the week ended February 9 from 8.2% a year ago, reflecting the impact of the decision of the Reserve Bank of India (RBI) to withdraw ₹2,000 banknotes.

Currency-in-circulation (CiC) refers to notes and coins in circulation, while currency with the public comprises notes and coins in circulation minus cash with banks.

Also read | More than 97% of ₹2,000 notes returned: RBI

According to the RBI, commercial banks have reported double-digit growth in deposits in January, which too can be attributed to withdrawal of ₹2,000 currency notes.

The growth of Reserve Money (RM), as per the RBI data, decelerated to 5.8% as on February 9, 2024 from 11.2% a year ago (8.8% adjusted for the first-round impact of change in Cash Reserve Ratio (CRR).

Components of RM include CiC, banks’ deposits in RBI and other deposits with the central bank.

The growth in CiC , the largest component of RM, decelerated to 3.7% from 8.2% a year ago, reflecting the withdrawal of ₹2,000 banknotes, according to the RBI.

On May 19, 2023, RBI announced withdrawal of ₹2,000 denomination banknotes from circulation.

As on January 31, nearly 97.5% of the ₹2,000 banknotes were returned to the banking system, and only about ₹8,897 crore worth of such notes are still with the public.

The total value of ₹2,000 banknotes in circulation was Rs 3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of ₹2,000 banknotes was announced.

Public and entities holding such notes were initially asked to either exchange or deposit them in bank accounts by September 30, 2023. The deadline was later extended to October 7, 2023. Deposit and exchange services at bank branches were discontinued on October 7, 2023.

Starting October 8, 2023 individuals have been provided with the choice of either exchanging the currency or having the equivalent sum credited to their bank accounts at the 19 offices of RBI.

The ₹2,000 banknotes were introduced in November 2016, following the demonetisation of the then-prevailing ₹1,000 and ₹500 banknotes.