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Key Points

The RBI has successfully withdrawn 98.31% of Rs 2,000 notes from circulation, leaving only Rs 6,017 crore unreturned. These high-denomination notes were introduced in 2016 after demonetization but were phased out due to their limited lifespan. Finance Minister Pankaj Chaudhary confirmed sufficient currency stocks in other denominations for public needs. The move aligns with the RBI's Clean Note Policy to maintain efficient cash circulation.

Key Points: Only 1.69% of Rs 2,000 Notes Worth Rs 6,017 Crore Remain with RBI

  • Rs 2,000 notes introduced post-demonetization in 2016
  • 98.31% returned under RBI's Clean Note Policy
  • Notes had 4-5 year lifespan
  • Adequate stock of other denominations ensured smooth transition
2 min read

Only 1.69 pc of Rs 2,000 banknotes worth Rs 6,017 crore yet to return to RBI: Minister

RBI reports 98.31% of Rs 2,000 notes returned, leaving just Rs 6,017 crore in circulation as of July 31.

"About 89% of Rs 2,000 notes were issued before March 2017 and are near the end of their lifespan. – Pankaj Chaudhary"

New Delhi, Aug 18

Only 1.69 per cent of the Rs 2,000 banknotes were yet to be returned to the Reserve Bank of India (RBI) from circulation (as on July 31), the Parliament was informed on Monday.

As per the Reserve Bank of India (RBI), the total value of Rs 2,000 banknotes in circulation, which was Rs 3.56 lakh crore at the close of business on May 19, 2023, has declined to Rs 6,017 crore as on July 31.

Before undertaking the exercise of withdrawal of Rs 2,000 banknotes, it was ensured that sufficient buffer stock of cash was available with banks across the country to meet the exchange/withdrawal requirements.

The same was augmented through regular supply of cash to various banks located across the country, Minister of State for Finance, Pankaj Chaudhary, said in a written reply to a question in Lok Sabha.

The Rs 2,000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time, he added.

The objective of introducing Rs 2,000 banknotes was met once banknotes in other denominations became available in adequate quantities.

About 89 per cent of Rs 2,000 denomination notes were issued prior to March 2017 and are close to the end of their useful life, which spans from 4-5 years.

Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public, said the minister.

"In view of the above, and in pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it was decided to withdraw the Rs 2,000 denomination banknotes from circulation on May 19, 2023," he added.

- IANS

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Reader Comments

P
Priya S
I still have 2 notes left at home! Totally forgot about the deadline. Does anyone know if we can still exchange them at RBI offices? The bank near my house refused yesterday.
A
Arjun K
The 2000 rupee note withdrawal was handled much better than demonetization in 2016. No long queues this time and proper planning by RBI. This is how economic policies should be implemented.
S
Sarah B
As someone who works in retail, I can confirm this was needed. Fake 2000 notes were becoming common and caused huge losses to small businesses. The clean note policy makes sense.
K
Karthik V
But what about the 6000 crores still out there? That's not small money. RBI should extend the deadline by 1 month with proper awareness campaigns in rural areas where people might not know.
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Meera T
The timing was perfect - after COVID when digital payments became mainstream. Most of us were already using UPI, so the transition was smooth. Jai Digital India! 💻
D
David E
As an expat, I found this confusing at first. But Indian banks handled it professionally. My company payroll team helped exchange all notes for employees. Good systems in place.

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