RBI Reports 98% Return of Rs 2000 Banknotes Post Withdrawal Announcement

The Reserve Bank of India (RBI) has reported that 98% of ₹2000 banknotes have been returned following the May 2023 withdrawal announcement. Out of ₹3.56 lakh crore in circulation as of May 19, ₹3.42 lakh crore worth of ₹2000 notes have been deposited or exchanged by the public. The majority of these withdrawals occurred through deposits in bank accounts, with a smaller portion exchanged directly at banks. The RBI had extended the exchange or deposit deadline for these notes until October 7, 2023, emphasizing that ₹2000 notes would remain legal tender. The central bank highlights that this decision aligns with its initiatives to promote clean note policy and encourage digital transactions. This marks a significant move to transition India’s economy toward greater transparency and reduced reliance on higher-denomination currency.