97.26% of Rs 2,000 notes returned since May 19 when they were withdrawn: RBI

The Reserve Bank of India (RBI) on Friday said that  97.26% of Rs 2,000 notes in circulation as of May 19, 2023, have returned, adding, that the notes still continue to be a legal tender.

"The total value of Rs 2000 notes in circulation, which amounted to 3.56 lakh crore as at the close of business on May 19, 2023 when the withdrawal of Rs 2000 banknotes was announced, has declined to Rs 9, 760 crore as at the close of business on November 30, 2023. 97.26% of the Rs 2,000 banknotes in circulation as of May 19, 2023, have returned. The Rs 2,000 banknotes continue to be legal tender," the RBI said in a statement.

The RBI had announced the withdrawal of Rs 2000 notes from circulation on May 19, 2023 and the status of the withdrawal of the notes is periodically published by the central bank.

The facility for deposit or exchange of the notes was available at all bank branches in the country initially up to September 30, 2023, which was later extended to October 7, 2023.

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"The facility for the exchange of Rs 2000 banknotes was also available at the 19 Issue Offices of the Reserve Bank from May 19, 2023. From October 9, 2023, RBI Issue Offices, in addition to exchanging Rs 2000 denomination banknotes across the counters, are also accepting Rs 2000 banknotes for individuals/entities for deposit to their bank accounts," read the statement.

"Further, members of the public from within the country can send Rs 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 in India," it added.

The decision to discontinue the circulation of Rs 2,000 denomination banknotes was made in accordance with the RBI's 'Clean Note Policy'.

A few months ago, a study published by the State Bank of India said the removal of Rs 2,000 notes from circulation will have positive implications for the country's banking system.

It added that the move will boost bank deposits, and repayment of loans, and have an overall positive impact on consumption and the Reserve Bank of India’s retail central bank digital currency (CBDC).

With inputs from agencies