Most Rs 2,000 notes returned, less than 2 percent still in circulation: RBI

Mumbai: As many as 98.24 percent of the Rs 2,000 banknotes that were in circulation as of 19 May 2023 have now been returned, with the total value of such notes remaining outside the banking system falling to Rs 6,266 crore as of close of business on 30 April 2025, according to an update from the Reserve Bank of India (RBI) on Friday.

The total value of Rs 2,000 banknotes in circulation was Rs 3.56 lakh crore as of 19 May 2023, when the withdrawal was first announced. This means that less than two percent of the notes are still circulating. The Rs 2,000 banknotes continue to retain their status as legal tender.

Exchange facilities and deposits through India Post

The facility for exchanging Rs 2,000 banknotes has been available at the 19 Issue Offices of the Reserve Bank since 19 May 2023. From 9 October 2023 onwards, RBI Issue Offices have also accepted Rs 2,000 notes from individuals and entities for deposit into their bank accounts. Furthermore, the public has been sending Rs 2,000 banknotes through India Post from any post office across the country to RBI Issue Offices for credit to their bank accounts, the official statement confirmed.

Withdrawal timeline and previous announcements

The Reserve Bank had announced the withdrawal of the Rs 2,000 denomination banknotes from circulation on 19 May 2023. The status of the withdrawal has been periodically updated, with the last press release on the matter issued on 1 October 2024. The facility for depositing or exchanging Rs 2,000 notes was made available at all bank branches nationwide up until 7 October 2023.

Introduction and phasing out of Rs 2,000 notes

The Rs 2,000 denomination banknote was initially introduced in November 2016, primarily to meet the currency demand of the economy following the withdrawal of the legal tender status of the old Rs 500 and Rs 1,000 notes. With that objective achieved and sufficient quantities of other denominations available, the printing of Rs 2,000 notes was discontinued in 2018-19.

Most Rs 2,000 banknotes were issued prior to March 2017 and had reached the end of their estimated lifespan of four to five years. It was observed that this denomination was not commonly used for everyday transactions. Moreover, the stock of other banknote denominations was considered sufficient to meet public demand.

Clean note policy objective

In light of these factors and in pursuance of the "Clean Note Policy" of the Reserve Bank of India, it was decided to withdraw the Rs 2,000 denomination banknote from circulation. The RBI’s Clean Note Policy aims to ensure the availability of good-quality banknotes to the public.