93% of Rs 2,000 notes back with banks, notes worth Rs 24,000 cr remain in circulation: RBI

As much as 93% of the Rs 2,000 currency notes have either been deposited or exchanged at banks, and only notes worth Rs 24,000 crore remain in circulation as on August 31, the Reserve Bank of India (RBI) said on Friday.

"According to the data received from the banks, the total value of Rs 2,000 banknotes received back from circulation is Rs 3.32 lakh crore up to August 31, 2023. Consequently, value of Rs 2,000 banknotes in circulation as at the close of business on August 31, 2023 stood at Rs 24,000 crore. Thus, 93% 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 has been exchanged into other denomination banknotes, said the banking regulator.

The central bank, in a surprise move, on May 19 announced withdrawal of Rs 2,000 notes from circulation but gave public time till September 30 to either deposit such notes in accounts or exchange them at banks.

Unlike the November 2016 demonetisation when old Rs 500 and Rs 1,000 notes were invalidated overnight, the Rs 2,000 notes will continue to be a legal tender till September 30.

It may be noted that RBI has not yet clarified what would be the status of Rs 2,000 notes in private hands after September 30.
     
After announcing demonetisation in 2016, the government had made it an offence to hold the withdrawn Rs 500 and 1,000 notes (beyond a specified limit) after expiry of the deposit deadlines.