State-owned Bank of Baroda (BoB) has so far received Rs 10,000 crore worth of Rs 2,000 currency notes, either as deposits or in exchange, two senior bank officials told Moneycontrol.
"We have received approximately Rs 10,000 worth of Rs 2,000 notes, out of which 90 percent was received in deposits and the remaining in exchange. Things are running in a smooth way,” said the official, on condition of anonymity.
The RBI had on May 19 announced the withdrawal of Rs 2,000 bills as part of its clean note policy. For smooth completion of exchange or deposit, the RBI has provided all banks time until September 30, 2023. It also advised banks to stop issuing the Rs 2,000 denomination banknotes with immediate effect.
The Rs 2,000 note was introduced in November 2016 to meet the currency requirement after Rs 500 and Rs 1,000 notes were demonetised.
As the objective was met and smaller denomination notes were available in adequate quantities, the printing of the Rs 2,000 notes was stopped in 2018-19.
On June 8, Reserve Bank of India (RBI) Governor Shaktikanta Das said around 50 percent of the Rs 2,000 currency notes in circulation as at the end of March had returned to the banking system.
This constitutes around Rs 1.8 lakh crore in terms of value, the governor said. As at March-end, the total value of Rs 2,000 notes in circulation was around Rs 3.62 lakh crore, Das said
The RBI chief added that around 85 percent of the notes have come back to the system in the form of deposits.
Earlier, State Bank of India (SBI) Chairman Dinesh Kumar Khara said around Rs 14,000 crore worth of Rs 2,000 denomination currency notes had come into bank accounts as deposits, while notes worth Rs 3,000 crore were exchanged through the branch network. "Generally, we are about 20 percent of the market," he said.
The numbers
According to RBI data, the total value of Rs 2,000 denomination banknotes in circulation was Rs 3.62 lakh crore, constituting 10.8 percent of the total notes in circulation on March 31, 2023.
About 89 percent of the Rs 2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated lifespan of four to five years.
“It has also been observed that this (Rs 2,000 banknote) denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public,” the RBI said in the release.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
