Only 1.69% of ₹2,000 notes worth ₹6,017 crore yet to return to RBI: Minister

New Delhi: Only 1.69 per cent of the ₹2,000 banknotes remain to be returned to the Reserve Bank of India (RBI) as of July 31, Union Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha on Monday.

According to RBI data, the total value of ₹2,000 notes in circulation stood at ₹3.56 lakh crore on May 19, 2023. This has since dropped sharply to ₹6,017 crore by July 31, 2024, following the withdrawal exercise.

Chaudhary said that before the withdrawal process was initiated, banks were provided with sufficient buffer stock of cash to meet exchange and withdrawal requirements. The supply of cash to banks across the country was also regularly augmented to ensure smooth availability, he added.

The Rs 2,000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time, he added.

The objective of introducing Rs 2,000 banknotes was met once banknotes in other denominations became available in adequate quantities.

About 89 per cent of Rs 2,000 denomination notes were issued prior to March 2017 and are close to the end of their useful life, which spans from 4-5 years.

Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public, said the minister.

"In view of the above, and in pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it was decided to withdraw the Rs 2,000 denomination banknotes from circulation on May 19, 2023," he added. IANS