Withdrawal of ₹2000 denomination currency notes by RBI

The ₹2000 denomination banknotes were introduced on November 10, 2016 under Section 24(1) of Reserve Bank of India (RBI) Act, 1934, to expeditiously meet the currency requirement of the economy post withdrawal of legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time. This was stated by Union Minister of State for Finance Shri Pankaj Chuadhary in a written reply to a question in Rajya Sabha today.

The Minister stated that vide RBI’s Press Release dated 19.05.2023 (https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=55707), RBI has conveyed that 89% of ₹2000 denomination notes were issued prior to March 2017 and are close to the end of their useful life which spans from 4-5 years. According to Pan-India survey of public conducted by RBI, ₹ 2000 denomination banknotes are no longer preferred for transactions. Further, the Minister stated, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public. In view of above and in pursuance of RBI’s “Clean Note Policy”, it was decided by RBI to withdraw the ₹2000 denomination banknotes from circulation.

Giving more information, as per RBI, the data on ₹2000 denomination banknotes in circulation (volume and value) for the years 2016 to 2023 as on end March each year is as follows:

As per RBI, the Minister stated, the details of the volume and value of ₹2000 denomination banknotes in circulation and banknotes returned from circulation post withdrawal of ₹2000 currency notes are as follows:

Giving more information, the Minister stated that as per RBI, the data on ‘Total Deposits outstanding’ and ‘Gross Loans and advances outstanding’, as reported by the Scheduled Commercial Banks, is as follows: