Daijiworld Media Network - Mumbai

Mumbai, May 1: The Reserve Bank of India (RBI) on Friday said that 98.47 per cent of the Rs 2,000 denomination banknotes withdrawn from circulation have been returned to the banking system, indicating near-complete withdrawal of the high-value currency.

According to RBI data, Rs 2,000 notes worth Rs 3.56 lakh crore were in circulation as of May 19, 2023, when the withdrawal was announced. Of this, notes worth Rs 3.50 lakh crore have since been returned, leaving only about Rs 5,430 crore still in circulation as of the latest update.

The central bank had announced the withdrawal of Rs 2,000 notes in May 2023 as part of its “clean note policy”, while clarifying that the currency would continue to remain legal tender. The move was aimed at improving the quality of banknotes in circulation and encouraging the use of lower denominations for day-to-day transactions.

Following the announcement, the RBI had allowed the public to deposit or exchange Rs 2,000 notes at banks within a stipulated timeframe, which was later extended through designated RBI issue offices even after the initial deadline.

The Rs 2,000 denomination note was introduced in November 2016 after the demonetisation exercise to quickly replenish currency in the system. However, over time, its usage declined, and printing of the note was discontinued.

The RBI reiterated that the withdrawal process has progressed smoothly, with most of the notes now returned, reflecting effective compliance by the public and the banking system.