New Delhi: The Reserve Bank of India (RBI) has announced significant progress in the withdrawal of ₹2000 denomination banknotes, with 98.12% of the notes in circulation as of May 19, 2023, now returned. This update follows the RBI’s latest press release on December 31, 2024.
The ₹2000 banknotes, which amounted to ₹3.56 lakh crore on May 19, 2023, have been reduced to just ₹6,691 crore by the close of business on December 31, 2024. The central bank had first announced the withdrawal of these high-value notes from circulation in May 2023, citing their limited usage and the objective to streamline the currency system.
While the facility for depositing and exchanging ₹2000 banknotes at bank branches ended on October 7, 2023, the RBI continues to provide alternatives for individuals and entities. These include exchanging notes at its 19 Issue Offices and depositing them into bank accounts via RBI Issue Offices starting October 9, 2023. Additionally, the public can send ₹2000 banknotes through India Post to any RBI Issue Office for credit to their accounts.
The RBI emphasized that despite the withdrawal process, ₹2000 banknotes remain legal tender. This ensures that the remaining notes can still be used for transactions, although their circulation has sharply declined.
This development marks the near-completion of the RBI’s efforts to phase out the ₹2000 notes, a move welcomed by many as a step toward reducing the circulation of high-denomination currency and promoting digital transactions. Further updates on the status of the withdrawal are expected from the central bank in the coming months.