Daijiworld Media Network - Mumbai
Mumbai, May 2: Nearly two years after the Reserve Bank of India (RBI) announced the withdrawal of Rs 2,000 denomination banknotes, 98.24% of the notes have been returned to the banking system.
According to an official RBI update released on Friday, the value of Rs 2,000 notes still in circulation stood at Rs 6,266 crore as of the close of business on April 30, 2025.
When the withdrawal was announced on May 19, 2023, Rs 2,000 banknotes worth Rs 3.56 lakh crore were in circulation. The latest data confirms that less than 2% of the total issued notes remain outside the formal financial system.
Despite the withdrawal from active circulation, the Rs 2,000 banknotes continue to be recognised as legal tender.
Since May 19, 2023, the exchange facility for these notes has been available at the 19 RBI Issue Offices across the country. From October 9, 2023, the Issue Offices also began accepting Rs 2,000 banknotes from individuals and entities for deposit into their bank accounts. Moreover, members of the public have been sending the notes via India Post from any post office to RBI Issue Offices for direct credit to their accounts.
The Rs 2,000 note was initially introduced in November 2016 to quickly address the currency shortage following the demonetisation of Rs 500 and Rs 1,000 notes. Once that objective was fulfilled and notes in other denominations became widely available, the printing of Rs 2,000 notes was discontinued in 2018–19.
Most of the Rs 2,000 notes were issued prior to March 2017 and have now reached the end of their estimated lifespan of four to five years. The RBI also noted that this high-denomination note is not commonly used for everyday transactions. Additionally, the central bank assessed that there is sufficient stock of currency in lower denominations to meet public needs.
In keeping with the RBI’s “Clean Note Policy” — which seeks to ensure the circulation of clean, good-quality currency — the decision to withdraw the Rs 2,000 note was formally taken and implemented. The exchange or deposit facility for these notes was available at all bank branches until October 7, 2023.
The RBI periodically releases updates on the status of the withdrawal exercise, with the previous press note issued on October 1, 2024.