RBI: 97.96% of the Rs 2,000 notes were taken out, and Rs 7,261 crore is still outstanding

As of August 30, 2024, the Reserve Bank of India (RBI) announced a significant reduction in the volume of Rs 2,000 banknotes still held by the public. The RBI reported that 97.96% of these notes have been returned to the banking system since the withdrawal of this denomination was first announced on May 19, 2023. At the time of the announcement, the total value of Rs 2,000 notes in circulation was a substantial Rs 3.56 lakh crore. By the end of August 2024, this amount had been dramatically reduced to just Rs 7,261 crore.

The Rs 2,000 banknotes were introduced in November 2016 as part of the Indian government's effort to address the issue of black money and counterfeit currency by demonetizing higher denomination notes of Rs 1,000 and Rs 500. However, the RBI's decision to withdraw Rs 2,000 notes from circulation was made public in May 2023, leading to a substantial reduction in their circulation over the subsequent months.

The RBI provided several options for the public to deposit or exchange these notes. From May 19, 2023, until October 7, 2023, individuals could exchange Rs 2,000 notes at any bank branch across India. Following this period, the RBI restricted the facility to deposit or exchange Rs 2,000 notes to its 19 issue offices located throughout the country. 

Starting October 9, 2023, these RBI issue offices began accepting Rs 2,000 notes for deposit into bank accounts. Additionally, the RBI allowed the public to use India Post services to send Rs 2,000 notes from any post office to the RBI issue offices for credit into their accounts.

The 19 RBI issue offices where Rs 2,000 notes can still be deposited or exchanged are strategically located in major cities, including Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram. This extensive network ensures broad access to these facilities for individuals across the country.

Despite the withdrawal announcement and the significant reduction in circulation, Rs 2,000 notes remain legal tender. The RBI's comprehensive approach to handling the withdrawal process reflects its commitment to managing the currency transition effectively while minimizing disruptions to the public.