Over 97% of Rs. 2,000 notes returned, says RBI
The Reserve Bank of India (RBI) has revealed that over 97% of the Rs. 2,000 notes, which were removed from circulation in May 2023, have been returned. The total value of these banknotes in circulation in India has dropped to Rs. 8,470 crore as of February 29, 2024. This is down from the daunting Rs. 3.56 lakh crore figure as of May 19, last year.
Note remains legally valid tender
Although the return rate for the Rs. 2,000 note seems moderate, the RBI had previously reported receiving 97.26% of these notes as of November 30, 2023. The RBI also emphasized that the Rs. 2,000 note remains a legally valid tender. The note was introduced in November 2016 to address cash needs after Prime Minister Narendra Modi's demonetization move, which scrapped the old Rs. 500 and Rs. 1,000 notes as legal tenders.
Limited usage and clean note policy led to withdrawal
The printing of the Rs. 2,000 note stopped in 2018-19 when enough supply of notes for other denominations became available. The RBI observed limited usage of these high-denomination notes in transactions and decided to withdraw them from circulation in accordance with its 'Clean Note Policy.' This policy aims to provide good quality currency notes to the public and maintain a clean currency system in the country.
