“RBI Discloses Sharp Decline in ₹2000 Banknote Circulation, Notes Remain Legal Tender”

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The Reserve Bank of India (RBI) has unveiled a significant drop in the circulation of ₹2000 denomination banknotes since their withdrawal announcement on May 19, 2023. According to recent data released by the central bank, the total value of ₹2000 banknotes in circulation has dwindled from ₹3.56 lakh crore to a mere ₹8,470 crore by February 29, 2024, marking a substantial decrease.

The RBI’s statement indicates that 97.62% of the ₹2000 banknotes in circulation as of May 19, 2023, have been returned, reflecting the success of the withdrawal initiative. Despite this decline, the RBI emphasizes that ₹2000 banknotes remain legal tender.

In its release, the RBI clarified that the facility for deposit and/or exchange of ₹2000 banknotes was accessible at all bank branches across the country until October 07, 2023. Additionally, the exchange facility has been extended to the 19 Issue Offices of the Reserve Bank (RBI Issue Offices) since May 19, 2023.

The introduction of the ₹2000 denomination banknote in November 2016 aimed to swiftly meet the currency demands of the economy following the withdrawal of the legal tender status of all ₹500 and ₹1000 banknotes. However, as per the RBI, the printing of ₹2000 banknotes ceased in 2018-19 after the objective of their introduction was achieved, and banknotes in other denominations became adequately available.

The RBI periodically publishes updates on the withdrawal status of ₹2000 banknotes, reflecting the ongoing monitoring and management of currency circulation within the Indian economy.

The revelation of the drastic reduction in ₹2000 banknote circulation underscores the effectiveness of the withdrawal initiative initiated by the RBI. As the Indian economy adapts to the evolving currency landscape, stakeholders will continue to monitor the central bank’s measures to ensure smooth currency transitions and effective monetary management.

Sources By Agencies