The banking system has received ₹2.72-lakh crore worth of ₹2,000 banknotes up to June 30, after the Reserve Bank of India (RBI) announced their withdrawal on May 19, reported Business Line.
Consequently, ₹2,000 banknotes in circulation as on June 30 stood at ₹84,000 crore. Thus, 76 per cent of the ₹2,000 banknotes in circulation as of May 19 have since been returned, said the RBI in a statement.
Exchange of notes
Data collected by the RBI from major banks indicate that out of the total banknotes in ₹2,000 denomination received, about 87 per cent came in the form of deposits, and the remaining, and around 13 per cent, was exchanged for other denomination banknotes.
The total value of ₹2,000 banknotes in circulation, which amounted to ₹3.62-lakh crore on March 31, 2023, had declined to ₹3.56-lakh crore at the close of business on May 19.
The RBI has asked the public to use the next three months to deposit and/or exchange ₹2,000 banknotes with them to avoid any last-minute rush before the window closes on September 30. The total value of these banknotes in circulation had declined from ₹6.73-lakh crore at its peak as of March 31, 2018 (37.3 per cent of notes in circulation) to ₹3.62-lakh crore, constituting only 10.8 per cent of notes in circulation on March 31, 2023, said the RBI in its May 19 statement.
“It has also been observed that this denomination is not commonly used for transactions,” said the central bank. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirements of the public.
“In view of the above and in pursuance of the clean note policy of the RBI, it has been decided to withdraw the ₹2,000 denomination banknotes from circulation. The banknotes in ₹2,000 denomination will continue to be legal tender,” the statement said.