RBI: Over 97% of Rs 2,000 notes returned to banking system

The Reserve Bank of India (RBI) announced on Wednesday that more than 97% of the Rs 2,000 bank notes have been returned to the banking system. As of October 31, 2023, only about Rs 10,000 crore worth of the notes were still in circulation, the central bank said in a circular.

Rs 2,000 Notes Withdrawn from Circulation

On May 19, 2023, the RBI announced the withdrawal of Rs 2,000 denomination bank notes from circulation. The total value of Rs 2,000 bank notes in circulation, which amounted to Rs 3.56 lakh crore as at the close of business on May 19, 2023, has declined to Rs 0.10 lakh crore as at the close of business on October 31, 2023, the RBI said.

Where to Deposit or Exchange Rs 2,000 Notes

The public can deposit and/or exchange the Rs 2,000 bank notes at the 19 RBI offices across the country. The central bank also urged members of the public to avail the facility of sending the Rs 2,000 bank notes through post offices of India Post, eliminating the need for travel to RBI offices.

Extended Deadline for Deposit and Exchange

Initially, public and entities holding Rs 2,000 notes were asked to either exchange or deposit them in bank accounts by September 30. However, the deadline was later extended to October 7. Both deposit and exchange services at bank branches were discontinued on October 7.

Long Queues at RBI Offices

Since October 8, individuals have been provided with the choice of either exchanging the currency or having the equivalent sum credited to their bank accounts at 19 offices of the RBI. However, long queues are being witnessed during the working hours at the RBI offices for the exchange and deposit of Rs 2,000 notes.

List of RBI Offices

The 19 RBI offices depositing/exchanging the bank notes are located in Ahmedabad, Bangalore, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram.

Introduction of Rs 2,000 Notes

The Rs 2,000 bank notes were introduced in November 2016 following the demonetisation of the then prevailing Rs 1,000 and Rs 500 bank notes. The decision to withdraw the Rs 2,000 notes from circulation was taken to combat counterfeiting and black money.

The RBI's announcement indicates that the process of withdrawing Rs 2,000 bank notes from circulation is progressing smoothly. With over 97% of the notes returned to the banking system, the central bank's efforts to curb counterfeiting and black money appear to be successful. The RBI's extension of the deadline for depositing or exchanging the notes and the provision of alternative channels such as post offices have facilitated the process for the public.