The RBI has been instrumental in currency system management right from its inception. Regularly reviewing and issuing advisories, the RBI has striven to keep the circulation of coins and notes smooth. In a notable turn of events, thus far the RBI has issued an important update concerning ₹2000 denomination notes.
Although currency notes with a face value of ₹2000 were withdrawn in 2023, notes worth ₹6,471 crore have yet to be returned to banks. Let us discuss this update further and its implications.
RBI’s Update on ₹2000 Notes
- Withdrawal Announcement: The RBI announced the withdrawal of ₹2000 notes from circulation on May 19, 2023, under the clean notes policy.
- Current Status: As of February 28, 2025, 98.18% of the ₹2000 notes have been successfully returned to the bank. However, ₹6,471 crore worth of notes is still in public circulation.
- Initial Circulation: The withdrawn ₹2000 notes had their total worth at ₹3.56 lakh crore in circulation.
Why Were ₹2000 Notes Withdrawn?
The RBI’s decision to withdraw the ₹2000 notes was to primarily facilitate the circulation of currency notes and check the mischief of high denomination notes. This has not only enhanced the circulation of lower denomination notes but also curb the menace of black money and hoarding.
Facilities Provided by RBI for Note Exchange
A number of facilities were proposed by the RBI to ensure a smooth transition.
- Deposit and Exchange Window: The banks were given permission to accept ₹2000 notes up to October 7, 2023.
- Extended Facility: After this period, 19 RBI branch offices continued their exchange and deposit services.
- Post Office Assistance: People can continue to deposit their ₹2000 notes at RBI issue offices and designated post offices all over the country.
Are ₹2000 Notes Still Valid?
Yes, ₹2000 notes are still valid for the time being. It means they can still be transacted and are legally valid. But the RBI urges people to deposit or exchange the notes promptly to avoid any inconvenience.
What Shall It Mean for the General Public?
If you are holding ₹2000 notes, here is what you are to do:
Depositing the notes in any acceptable bank or post office of the RBI regional office should be visited by you.
Carrying a valid proof of identity in execution of the said transaction shall be kept in mind.