76% of Rs 2,000 notes, worth Rs 2.72 lakh cr, received by banks since May 19: RBI

The Reserve Bank of India on Monday said post-withdrawal of the Rs 2,000 notes on May 19, banks have received 76% of the high-demonination notes till June 30. The central bank said that the total value of the notes returned so far is Rs 2.72 lakh crore.

"The total value of Rs 2,000 banknotes in circulation, which amounted to Rs 3.62 lakh crore on March 31, 2023 had declined to Rs 3.56 lakh crore as at the close of business on May 19, 2023. According to the data received from the banks, the total value of Rs 2,000 banknotes received back from circulation after the announcement on May 19 is Rs 2.72 lakh crore up to June 30, 2023. Consequently, Rs 2,000 banknotes in circulation as at the close of business on June 30 stood at Rs 84,000 crore. Thus, 76% of the Rs 2,000 banknotes in circulation as on May 19, 2023 have since been returned," said RBI in a statement.

Data collected from major banks indicates that out of the total banknotes in Rs 2,000 denomination received back from circulation, about 87% is in the form of deposits and the remaining around 13% has been exchanged into other denomination banknotes, said RBI.

"Members of the public are requested to utilise the next three months to deposit and/or exchange the Rs 2,000 banknotes held with them to avoid any rush in the last few days before September 30, 2023," said RBI in a statement. 

RBI had advised banks to stop issuing Rs 2,000 denomination banknotes with immediate effect. RBI, however, said that citizens will continue to be able to deposit Rs 2,000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch up to September 30, 2023.

The exchange of Rs 2,000 banknotes into banknotes of other denominations can be made upto a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.

The Rs 2,000 denomination banknotes were introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time. The objective of introducing Rs 2,000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of Rs 2,000 banknotes was stopped subsequently in 2018-19, stated RBI.

About 89 per cent of the Rs 2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life span of four-five years.