20-10-2023 : Reserve Bank Governor Shaktikanta Das, on October 19, provided an update on the status of the Rs 2,000 denomination notes in circulation, indicating that these notes are gradually returning to the banking system. He noted that only Rs 10,000 crore worth of Rs 2,000 notes remain with the public, and he expressed confidence that this remaining amount would also find its way back into the system.
In earlier statements this month, Governor Das had disclosed that 87 percent of the Rs 2,000 denomination notes, which were in the process of being phased out, had been returned to banks as deposits, while the remaining 13 percent had been exchanged through counters. This action by the Reserve Bank of India was taken as part of a plan to gradually withdraw the Rs 2,000 notes, which had been introduced in 2016 during a rapid remonetization effort.
This decision to phase out the Rs 2,000 notes came in the wake of Prime Minister Narendra Modi’s announcement to demonetize the Rs 500 and Rs 1,000 notes, which accounted for more than 88 percent of the currency in circulation. Initially, individuals and entities holding the Rs 2,000 notes were given the option to either exchange or deposit them in bank accounts by the deadline of September 30. However, this deadline was later extended to October 7.
Starting from October 8, people were allowed to either exchange their Rs 2,000 notes or have an equivalent sum credited to their bank accounts at 19 designated Reserve Bank of India locations. It’s important to note that individuals and entities can exchange Rs 2,000 notes at these RBI offices up to a limit of Rs 20,000 at a time, with no specified limit on the total amount for crediting Rs 2,000 notes to bank accounts.