The Reserve Bank of India (RBI) disclosed that as of January 31, 2024, a substantial portion, accounting for 97.50%, of the ₹2,000 denomination banknotes in circulation since the decision made on May 19, 2023, has been returned. The total value of ₹2,000 banknotes in circulation, previously standing at ₹3.56 lakh crore on May 19, 2023, has witnessed a significant reduction to ₹8,897 crore by the conclusion of business on January 31, 2024, as per the official statement released by the central bank.
It is important to note that despite the withdrawal announcement made in May 2023, the RBI underscored that ₹2,000 banknotes remain legal tender. The decision to withdraw these banknotes was motivated by their limited usage in transactions, with the central bank affirming that the available stock of banknotes in other denominations is sufficient to meet the currency requirements of the public.
Furthermore, the RBI clarified that the withdrawal aligns with its “Clean Note Policy,” emphasising the commitment to maintaining the integrity and quality of the currency in circulation. This strategic move is aimed at streamlining the currency ecosystem and ensuring the smooth functioning of transactions while upholding the standards outlined in the Clean Note Policy.
