The Reserve Bank of India (RBI) has revealed on February 1 that 97.50% of the Rs 2,000 currency notes in circulation as of May 19, 2023, have been successfully reintegrated into the banking system. This development follows the government’s decision to withdraw the high-denomination bills as part of the clean note policy.
What is the clean note policy?
The clean note policy is a policy adopted by RBI to ensure availability of good quality banknotes to members of the public. The RBI had announced the withdrawal of Rs 2,000 denomination banknotes from circulation on May 19, 2023, citing that they were not commonly used for transactions and that they were nearing the end of their estimated life-span of 4-5 years.
How were the Rs 2,000 notes withdrawn?
The RBI had provided a window for deposit and/or exchange of the Rs 2,000 banknotes at all bank branches and its 19 regional offices until September 30, 2023. The facility for exchange was also available through business correspondents and India Post. The RBI had also clarified that the Rs 2,000 banknotes would continue to be legal tender and could be used for normal transactions.
How many Rs 2,000 notes are still in circulation?
According to the latest update by the RBI, the total value of Rs 2,000 banknotes in circulation, which amounted to Rs 3.56 lakh crore as at the close of business on May 19, 2023 when the withdrawal was announced, has declined to Rs 0.10 lakh crore as at the close of business on October 31, 2023. Thus, more than 97% of the Rs 2,000 banknotes in circulation as on May 19, 2023, has since been returned. The RBI has yet to receive Rs 2,000 banknotes worth Rs 8,897 crore as of January 31, 2024.
What is the status of the withdrawal facility?
The window for deposit and/or exchange of the Rs 2,000 banknotes continues to be available at the 19 regional offices of RBI. Members of the public are requested to avail the facility of sending the Rs 2,000 banknotes through post offices of India Post. This will obviate the need for travel to RBI offices for deposit/exchange of the Rs 2,000 banknotes.