The Reserve Bank of India (RBI) has confirmed that the Rs 2,000 banknotes continue to be legal tender despite the announcement of their withdrawal from circulation on May 19, 2023. This development comes amidst the central bank’s ongoing efforts to manage the country’s currency system.
As of the latest update, approximately 97.38% of the Rs 2,000 denomination banknotes have been returned to the banking system. This figure represents a significant portion of the total value of these banknotes in circulation, which stood at ₹3.56 lakh crore at the close of business on May 19, 2023. By December 29, 2023, the total value of these notes in circulation had declined to ₹9,330 crore.
To facilitate the return of these notes, the RBI had initially allowed all bank branches in the country to accept deposits or exchanges of the ₹2000 banknotes until October 07, 2023. Following this period, the RBI’s 19 Issue Offices took over this responsibility. Starting from October 09, 2023, these offices have also been accepting the ₹2000 banknotes for deposit into bank accounts. Additionally, the public within India has been given the option to send ₹2000 banknotes through India Post from any post office in the country to any of the RBI Issue Offices for credit to their bank accounts.
The decision to withdraw the Rs 2,000 denomination notes was part of the RBI’s broader strategy to streamline the country’s currency management. Despite the high percentage of notes returned, the RBI’s assurance that the Rs 2,000 banknotes remain legal tender ensures that holders of these notes do not face any legal or financial difficulties in the immediate future.