More than 97% of Rs 2000 banknotes back with banks: RBI

Consequently, the total value of Rs 2000 banknotes in circulation as on October 31, stood at Rs 0.10 lakh crore. (Representative Image)

The Reserve Bank of India (RBI) on November 1 said that more than 97 percent of Rs 2000 banknotes in circulation has returned to the banking system.

Consequently, the total value of Rs 2000 banknotes in circulation as on October 31, stood at Rs 0.10 lakh crore.

On May 19, the central bank announced the withdrawal of Rs 2,000 currency bills from circulation.

"In view of the above, and in pursuance of the 'Clean Note Policy' of the Reserve Bank of India, it has been decided to withdraw the Rs 2,000 denomination banknotes from circulation," the RBI said on May 19.
While, on May 24, the RBI Governor said the central bank decided to withdraw the Rs 2,000 currency notes as this denomination was not much in use and high-denomination notes could lead to collateral issues.

“In our surveys, we found out that Rs 2,000 notes were not being used at all... It was being used, but not commonly used,” he said.

The facility for deposit and / or exchange of the Rs 2000 banknotes was available at all bank branches in the country initially upto September 30, 2023, which was later extended up to October 7, 2023.

On October 31, Moneycontrol reported that brazen middlemen, operating right outside the Reserve Bank of India (RBI) office in the National Capital, are making a killing from ‘customers' seeking to exchange the Rs 2000 notes, charging as much as Rs 400 per bill.

The deadline to exchange the withdrawn notes at bank branches ended on October 7, but the facility is still available at RBI offices, which have drawn long queues of people who couldn't deposit or exchange their notes earlier.
The central bank, today, in a release said the window for deposit and / or exchange the Rs 2000 banknotes continues to be available at the 19 Issue Offices of RBI.

"Members of the public are requested to avail the facility of sending the ₹2000 banknotes through post offices of India Post," release added.