Mumbai, 3rd July 2023 – The Reserve Bank of India (RBI) has made a significant announcement regarding the withdrawal of ₹2000 denomination banknotes from circulation. In a press release issued on May 19, 2023, the RBI shared its decision to phase out these banknotes, and since then, progress has been made in returning them to the banking system.
As of May 19, the total value of ₹2000 banknotes in circulation was recorded at ₹3.56 lakh crore. However, by March 31, 2023, this value had decreased to ₹3.62 lakh crore. The latest data from banks indicates that ₹2.72 lakh crore worth of ₹2000 banknotes have been returned from circulation as of June 30, 2023. This means that 76% of the banknotes in circulation on May 19 have been successfully returned.
Analyzing the returned ₹2000 banknotes, it is observed that approximately 87% of the total value consists of deposits, while the remaining 13% has been exchanged for banknotes of other denominations.
In light of these developments, the RBI is urging the public to take advantage of the next three months to deposit or exchange any ₹2000 banknotes they possess. By doing so, they can avoid a potential rush in the final days leading up to September 30, 2023.
The RBI’s decision to withdraw ₹2000 banknotes from circulation is part of its ongoing efforts to ensure the smooth functioning of the currency system. By gradually phasing out these banknotes, the RBI aims to address concerns related to counterfeiting and illegal activities while promoting the use of smaller denominations and digital transactions.
The RBI remains committed to facilitating a seamless transition during this period and has assured the public that adequate arrangements will be made for the exchange and deposit of ₹2000 banknotes at bank branches and other designated facilities.
It is essential for individuals and businesses to be aware of this development and take the necessary steps to ensure a hassle-free transition. The RBI’s decision underscores its dedication to maintaining the integrity and efficiency of the Indian currency system while embracing the evolving needs of a digital economy.
As the withdrawal of ₹2000 banknotes progresses, the RBI will continue to monitor the situation closely and provide timely updates and guidance to the public.
