NEW DELHI, Dec 3: The Reserve Bank of India (RBI) has reported a major reduction in the circulation of ₹2000 denomination banknotes, with 98.08 percent of the total value in circulation as of May 19, 2023, now returned. As of November 29, 2024, the value of ₹2000 banknotes in circulation stands at ₹6,839 crore, a sharp decline from ₹3.56 lakh crore recorded when the withdrawal was first announced.

The RBI initiated the withdrawal of ₹2000 banknotes through a notification on May 19, 2023. While the notes remain legal tender, the RBI has been working to phase them out of active circulation. Initially, the public could deposit and exchange ₹2000 banknotes at all bank branches until October 7, 2023. From October 9, 2023, onwards, the exchange facility has been restricted to the 19 RBI Issue Offices, with an additional provision allowing individuals to send ₹2000 banknotes via India Post to RBI Issue Offices for credit to their bank accounts.

The RBI has consistently issued updates on the withdrawal process, with the latest press release published on November 4, 2024. The swift return of ₹2000 banknotes highlights the public’s compliance with the RBI’s withdrawal initiative.

Despite their reduced circulation, ₹2000 banknotes continue to be accepted as legal tender and can be used in transactions where accepted. This withdrawal is part of the RBI’s broader efforts to recalibrate the currency system, streamline monetary operations, and ensure efficient cash management to meet evolving economic needs.