Business & Economy

RBI Confirms Continued Legal Tender Status for Rs 2,000 Banknotes; 97.38% Notes Returned to System

The Reserve Bank of India (RBI) reiterated that Rs 2,000 banknotes continue to be legal tender despite the announcement of their withdrawal on May 19, 2023. According to the latest data provided by the RBI on December 29, 2023, a significant 97.38% of the withdrawn notes have already returned to the system.

As of the stated date, Rs 2,000 notes worth Rs 9,330 crore are still in circulation, compared to the substantial amount of Rs 3.56 lakh crore on May 19, 2023. This indicates a considerable decline in the total value of Rs 2,000 banknotes in circulation since the withdrawal announcement. The central bank highlighted that the returned notes amount to 97.38% of the Rs 2,000 banknotes that were in circulation as of the withdrawal date.

The decision to withdraw Rs 2,000 denomination banknotes was announced by the RBI on May 19, 2023. Despite the withdrawal, the public still has the option to deposit and/or exchange the Rs 2,000 banknotes at the 19 RBI offices located across the country.

From October 9, 2023, RBI Issue Offices have also been accepting Rs 2,000 banknotes from individuals and entities for deposit into their bank accounts. Additionally, members of the public can send Rs 2,000 banknotes through India Post from any post office in the country to any of the RBI Issue Offices for credit to their bank accounts.

The process for depositing or exchanging the notes initially had a deadline of September 30, which was later extended to October 7. Deposit and exchange services at bank branches were discontinued after October 7. Starting October 8, individuals have been provided with the choice of either exchanging the currency or having the equivalent sum credited to their bank accounts at the 19 designated RBI offices.

The 19 RBI offices accepting and exchanging the banknotes are located in Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram.

It is noteworthy that the Rs 2,000 banknotes were introduced in November 2016 as part of the demonetization process, replacing the then-prevailing Rs 1,000 and Rs 500 banknotes. The recent update from the RBI underscores the ongoing management of the currency transition and the sustained legal tender status of the Rs 2,000 banknotes.

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