New Delhi:

Reserve Bank Governor Shaktikanta Das today said Rs 2,000 denomination notes are coming back and only Rs 10,000 crore worth of such notes are still with people.

He exuded confidence that these notes will also be returned or deposited back.

“Rs 2,000 notes are coming back and only Rs 10,000 crore is left in the system. The expectation is that the amount will also come back,” he said on the sidelines of the event.

Earlier this month, Das had said 87 per cent of the Rs 2,000 denomination notes being withdrawn have returned as deposits into banks while the rest has been exchanged across counters.

On May 19, the Reserve Bank of India (RBI) took the financial world by surprise when it declared its plan to phase out the Rs 2,000 note, which had been introduced in 2016 as part of a rapid remonetisation effort.

This had followed Prime Minister Narendra Modi’s announcement to withdraw more than 88 per cent of the currency in circulation by invalidating the Rs 500 and Rs 1,000 notes.

Public and entities holding such notes were initially asked to either exchange or deposit them in bank accounts by September 30. The last date was later extended to October 7.

On October 7, both deposit and exchange services at bank branches were discontinued.

Starting October 8, individuals were provided with the choice of either exchanging the currency or having the equivalent sum credited to their bank accounts at 19 Reserve Bank of India locations.

Individuals or entities can exchange Rs 2,000 bank notes at the 19 RBI offices up to a limit of Rs 20,000 at a time. However, there is no limit on the total amount for getting Rs 2,000 notes credited into bank accounts.
 

File picture of a bank customer depositing ₹2,000 currency note
| Photo Credit: R. Ragu

The Reserve Bank of India (RBI) has extended the deadline for exchange and deposit of ₹2,000 bank notes until October 7, adding that the denomination will continue to be legal tender even after the date. From October 8, individuals and entities can exchange ₹2,000 notes at RBI issue offices.

The earlier deadline to deposit and exchange the note was today, September 30.

An RBI notification said that deposit or exchange of ₹2,000 notes at bank branches would be stopped from October 8, but can be exchanged at the 19 RBI Issue Offices up to a limit of ₹20,000 at a time.

Individuals and entities within the country can also send ₹2,000 banknotes through India Post, addressed to any of the 19 RBI Issue Offices for credit to their bank accounts in India. Such exchange or credit, said the central bank, shall be subject to relevant RBI and Government regulations, submission of valid identity documents and due diligence as deemed fit by RBI.

However, courts, law enforcement agencies, government departments and other public authority involved in investigation proceedings or enforcement, may deposit and exchange the ₹2,000 notes at any of the RBI Issue Offices without any limit.

According to the data received from banks, of the total value of ₹3.56 lakh crore of ₹2,000 banknotes in circulation as on May 19, 2023, ₹3.42 lakh crore has been received back, leaving only ₹0.14 lakh crore in circulation as at the close of business on September 29, 2023.

Thus, 96% of the ₹2,000 banknotes in circulation as on May 19, 2023 has since been returned.

Mumbai:

The Reserve Bank on Friday said that as much as 93 per cent of Rs 2000 currency notes that were in circulation on May 19 — the day when the currency was withdrawn from circulation — have been returned to banks.

According to the data received from the banks, the total value of Rs 2000 banknotes received back from circulation is Rs 3.32 lakh crore up to August 31, 2023, it said in a statement.

“Consequently, Rs 2000 banknotes in circulation as at the close of business on August 31, 2023 stood at Rs 0.24 lakh crore. Thus, 93 per cent of the Rs 2000 banknotes in circulation as on May 19, 2023, have since been returned,” it said.

Data collected from major banks indicates that out of the total banknotes in Rs 2000 denomination received back from circulation, about 87 per cent is in the form of deposits and the remaining around 13 per cent has been exchanged into other denomination banknotes.

The Reserve Bank of India had announced the withdrawal of Rs 2000 banknotes from circulation on May 19, 2023..

The total value of Rs 2000 banknotes in circulation, which amounted to Rs 3.62 lakh crore on March 31, 2023, had declined to Rs 3.56 lakh crore as at the close of business on May 19, 2023.

RBI requested the members of the public holding the high-value banknote to utilise the remaining period until September 30, 2023, to deposit and/or exchange them.