RBI says 93% of Rs 2,000 banknotes returned as deadline looms

Out of the returned Rs 2,000 banknotes, approximately 87 percent have been deposited in banks, while the remainder have been exchanged for other denominations.

The RBI has reminded the public that they have until September 30, 2023, to deposit or exchange any Rs 2,000 banknotes they may still hold. After this deadline, these notes will cease to be legal tender

The Rs 2,000 banknotes were introduced in November 2016 (under Section 24(1) of The RBI Act, 1934) within days of the November 8 demonetisation wherein the government had withdrawn the legal tender status of all Rs 500 and Rs 1,000 banknotes to meet the currency requirements in an expeditious manner.

About 89 percent of the Rs 2,000 banknotes were issued prior to March 2017 and are at the end of their estimated life span of four to five years.

The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as of March 31, 2018 (37.3 percent of notes in circulation), to Rs 3.62 lakh crore, constituting only 10.8 percent of the notes in circulation as of March 31, 2023.

The central bank's currency presses had stopped printing the Rs 2,000 notes way back in 2018-19 itself.

The clean note policy seeks to give the public good-quality currency notes and coins with better security features, while soiled notes are withdrawn from circulation.

The RBI had earlier decided to withdraw from circulation all banknotes issued prior to 2005, as they have fewer security features compared to banknotes printed after 2005.

However, the notes issued before 2005 continue to be legal tender. They have only been withdrawn from circulation in conformity with the standard international practice of not having notes of multiple series in circulation at the same time.