The Reserve Bank of India (RBI) revealed that as of May 2, 97.76% of the Rs 2,000 currency notes in circulation since May 19, 2023, have been reintegrated into the banking system. The complete worth of Rs 2,000 banknotes dropped considerably from Rs 3.56 lakh crore in May 2023 to simply Rs 7,961 crore by April 30, 2024, marking a considerable decline, based on RBI statements.
Clean observe coverage
The withdrawal of high-value Rs 2,000 denomination banknotes was half of the RBI’s clear observe coverage initiative, aiming to streamline the currency circulation.
Exchange services
Initially, the trade and deposit of Rs 2,000 banknotes have been obtainable in any respect financial institution branches till October 7, 2023. Since May 19, 2023, people and entities have been in a position to trade these notes at 19 RBI Issue Offices.
Post workplace deposits
Since October 9, 2023, RBI Issue Offices have additionally been accepting Rs 2,000 banknotes from people and entities for deposit into their financial institution accounts. Additionally, members of the general public inside the nation can ship Rs 2,000 banknotes through India Post to any RBI Issue Office for credit score to their accounts.
Historical context
Introduced in November 2016 to expedite assembly the economic system’s currency wants after the withdrawal of Rs 500 and Rs 1,000 notes, the Rs 2,000 banknotes served their objective till different denominations grew to become adequately obtainable. Consequently, the printing of Rs 2,000 banknotes ceased in 2018-19.
Legal tender standing
Despite the decline in circulation and cessation of printing, Rs 2,000 banknotes will stay authorized tender, making certain their continued acceptance in transactions, as affirmed by the RBI.
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