The banking system has received ₹2.72-lakh crore worth of ₹2,000 banknotes up to June 30, 2023, after the Reserve Bank of India announced their withdrawal on May 19.
Consequently, ₹2,000 banknotes in circulation on June 30 stood at ₹84,000 crore. Thus, 76 per cent of the ₹2,000 banknotes in circulation as on May 19 have since been returned, said the RBI in a statement.
Data collected by the RBI from major banks indicate that out of the total banknotes in ₹2,000 denomination received, about 87 per cent is in the form of deposits and the remaining around 13 per cent has been exchanged into other denomination banknotes.
Exchange of notes
The total value of ₹2,000 banknotes in circulation, which amounted to ₹3.62-lakh crore on March 31, 2023, had declined to ₹3.56-lakh crore at the close of business on May 19. The RBI has requested the public to utilise the next three months to deposit and/or exchange ₹2,000 banknotes held with them to avoid any rush in the last few days before September 30.
The total value of these banknotes in circulation had declined from ₹6.73-lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to ₹3.62-lakh crore, constituting only 10.8 per cent of notes in circulation on March 31, 2023, said the RBI in its May 19 statement.
“It has also been observed that this denomination is not commonly used for transactions,” said the central bank. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.
“In view of the above, and in pursuance of the clean note policy of the RBI, it has been decided to withdraw the ₹2,000 denomination banknotes from circulation.
“The banknotes in ₹2,000 denomination will continue to be legal tender,” per the statement.