Most Rs 2,000 notes will be returned by September 30, says RBI governor Shaktikanta Das

Shaktikanta Das

The Reserve Bank of India expects most of the Rs 2,000 notes to return to the banking system by September 30, governor Shaktikanta Das said on May 22, a day before citizens start exchanging or depositing the note being pulled out of circulation.

The withdrawal of the country’s highest denomination note, which was announced by the RBI on May 19, was part of the central bank's currency management, Das said. The central bank has given citizens time till September 30 to deposit or exchange the notes which continue to be a legal tender.

While announcing the decision, the RBI had said that as on March 31, 2023, the total value of Rs 2,000 note had declined to Rs 3.62 lakh crore, accounting for only 10.8 percent of the notes in circulation. At its peak, the value was Rs 6.73 lakh crore as on March 31, 2018

About 89 percent of the Rs 2,000 notes were issued before March 2017 and were at the end of their estimated life-span of four to five years, the banking regulator said.

Das said the note was introduced primarily to replenish the currency that was withdrawn following 2016 demonetisation.

The Rs 2,000 rupee notes can either be deposited in bank accounts or exchanged for lower denominations, the RBI said.

Earlier in the day, the RBI asked banks to provide appropriate infrastructure such as shaded waiting space and drinking water facilities to citizens, considering the summer season

The Indian currency management system was robust and the exchange rate remained stable despite the crisis in financial markets due to the war in Ukraine and the failure of certain banks in the West, Das said. “Despite the crisis, our exchange rate remained stable,” he added.