The Reserve Bank of India (RBI) on Wednesday said more than 97 per cent of the ₹2,000 banknotes in circulation as on May 19, 2023, have been returned by October 31, 2023, even as the remaining notes in circulation continue to be legal tender.

The central bank, in its update on withdrawal of ₹2,000 denomination banknotes, underscored that the total value of ₹2,000 banknotes in circulation, which amounted to ₹3.56 lakh crore as at the close of business on May 19, 2023 when their withdrawal was announced, has declined to ₹10,000 crore as at the close of business on October 31, 2023.

While the facility for deposit and /or exchange of the ₹2,000 banknotes at all bank branches in the country ended on October 7, 2023, the RBI said from October 9, 2023, its Issue Offices, in addition to exchanging these banknotes across the counters, are also accepting them from individuals / entities for deposit to their bank accounts.

Further, members of the public from within the country can send ₹2,000 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.

“The window for deposit and /or exchange the ₹2,000 banknotes continues to be available at the 19 Issue Offices of RBI.

“Members of the public are requested to avail the facility of sending the ₹2,000 banknotes through post offices of India Post. This will obviate the need for travel to RBI Offices for deposit / exchange of the ₹2,000 banknotes,” the central bank said.

The RBI initiated the exercise for withdrawal of ₹2,000 banknotes on May 19 as the objective of introducing them (to meet the currency requirement of the economy after the withdrawal of legal tender status of all ₹500 and ₹1,000 banknotes in circulation in the November-December 2016 period) was met once banknotes in other denominations became available in adequate quantities.

“About 89 per cent of the ₹2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years…It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.

“In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the ₹2,000 denomination banknotes from circulation,” the central bank said in a statement on May 19, 2023.