Top Stories

The ₹2000 banknote withdrawal: Where we stand

Nov 3, 2023

By: BlinkX Research Team

In a move to phase out ₹2000 denomination banknotes, the Reserve Bank of India (RBI) had issued a Press Release (2023-2024/257) on May 19, 2023. Here's the latest update on the withdrawal process and the status of these banknotes.

Extended Deposit and Exchange Period: 
Initially, the facility for depositing or exchanging ₹2000 banknotes was available at all bank branches until September 30, 2023. However, this deadline was later extended to October 07, 2023, allowing more time for individuals and entities to handle these notes.

Expanded Access to RBI Issue Offices: 
Since May 19, 2023, individuals have been able to exchange ₹2000 banknotes at the 19 Issue Offices of the Reserve Bank (RBI Issue Offices). Starting from October 09, 2023, the RBI Issue Offices not only accept these banknotes over the counter but also allow individuals and entities to deposit them directly into their bank accounts.

Significant Reduction in Circulation: 
On May 19, 2023, when the withdrawal was announced, ₹2000 banknotes totaling ₹3.56 lakh crore were in circulation. By October 31, 2023, this amount had drastically decreased to ₹0.10 lakh crore. This means that over 97% of the ₹2000 banknotes in circulation as of May 19, 2023, have been returned.

Accessible Options for Deposits:
The RBI continues to offer a window for depositing or exchanging ₹2000 banknotes at its 19 Issue Offices. To make this process more convenient, the public can utilize the services of India Post by sending ₹2000 banknotes from any post office in the country to RBI Issue Offices for crediting them to their bank accounts in India.
 

Legal Tender Status:
It's important to note that ₹2000 banknotes retain their legal tender status. This means they can still be used for transactions within the specified guidelines.

As the withdrawal of ₹2000 denomination banknotes progresses, the RBI remains committed to facilitating a smooth transition and ensuring that the public has access to convenient methods for managing these notes.