Over 97% of Rs. 2,000 banknotes returned to banks: RBI
On November 1, the Reserve Bank of India (RBI) revealed that over 97% of Rs. 2,000 banknotes in circulation have been returned to the banking system. Consequently, the total value of these notes in circulation amounted to Rs. 0.10 lakh crore as of October 31. The RBI had chosen to remove the Rs. 2,000 denomination banknotes from circulation on May 19, referring to its "Clean Note Policy" and the infrequent use of this high-denomination note.
Withdrawal decision based on surveys and collateral issues
RBI Governor Shaktikanta Das giving a clarification on May 24, said, "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." Additionally, high-denomination notes could result in collateral issues. The option to deposit and/or exchange the Rs. 2,000 banknotes was initially accessible at all bank branches until September 30, 2023, which was later extended to October 7, 2023.
Exchange facility continues at RBI offices
Although the deadline for exchanging Rs. 2,000 notes at bank branches concluded on October 7, the facility remains available at RBI offices. RBI offices still witness long queues of people who couldn't deposit or exchange their notes before the deadline. The central bank has encouraged the public to utilize the facility of sending the Rs. 2,000 banknotes through post offices of India Post.
