98.12% of Rs 2000 Notes in Circulation Has Been Returned: RBI

The Reserve Bank of India (RBI) has announced that 98.12% of Rs 2000 banknotes in circulation as of May 19, 2023 have been returned. This update follows the RBI’s decision to withdraw the Rs 2000 denomination notes from circulation, announced in May 2023.

When the withdrawal was initiated, the total value of Rs 2000 notes in circulation stood at Rs 3.56 lakh crore. By 31 December 2024, this value had significantly reduced to Rs 26,691 crore, reflecting the widespread return of these notes.

The facility to deposit or exchange Rs 2000 notes was available at bank branches across the country until 7 October 2023. Since then, exchanges can only be made at the RBI’s 19 Issue Offices. Individuals and entities can also send Rs 2000 notes via India Post to RBI offices for deposit into their bank accounts.

Despite their withdrawal, the Rs 2000 banknotes remain legal tender. This means they can still be used for transactions, although they are no longer being reissued.

The Rs 2000 banknote was introduced in India in November 2016, following the government’s demonetisation of Rs 500 and Rs 1000 notes. This move aimed to curb black money, counterfeit currency, and corruption while promoting a cashless economy. The RBI introduced the Rs 2000 note to quickly replenish cash in circulation and address the currency shortage caused by the sudden withdrawal of high-denomination notes.

The Rs 2000 note featured advanced security measures to deter counterfeiting and was printed in a magenta colour with the theme of India’s space programme, showcasing the Mangalyaan (Mars Orbiter Mission). It became the highest denomination note in circulation at the time.

Although initially useful for easing cash shortages, its high value made it less practical for everyday transactions. Over time, the government and RBI reduced its circulation, leading to its gradual withdrawal beginning in May 2023.