2000 Rupee Notes Continue, RBI Confirms Legal Validity with Over 97% Notes Returned to Banks
After the announcement to withdraw the INR 2000 notes, a significant portion of these notes has been deposited in banks. The Reserve Bank, in its recent update, stated that more than 97% of the INR 2000 notes in circulation have been returned.
Demonetization Impact and Future Legal Tender Status
On Friday, December 1, it was revealed that 97.26% of the INR 2000 notes in circulation as of May 19, 2023, have been returned to the banking system. The Central Bank affirmed that the INR 2000 note remains a legal tender, and its legal status will persist in the future.
Remaining Notes in Circulation and Price Change
As of May 19, 2023, the Reserve Bank announced the withdrawal of INR 2000 notes. This decision was linked to demonetization, and it was also referred to as mini-demonetization. The value of the INR 2000 note in circulation dropped from Rs. 3.56 lakh crore on May 19, 2023, to Rs. 9,760 crore by November 30, 2023.
Extension of Deadline for Note Exchange by RBI
Previously, the last day to exchange notes was September 30, but the Reserve Bank extended the deadline by one week. The RBI, through a statement, mentioned that the decision to extend the deadline until October 7, 2023, was made based on the review of the assessment process after the stipulated time for demonetization.
Notes Withdrawn and Circulation Post Demonetization
After demonetization in November 2016, the Reserve Bank had withdrawn the INR 2000 note. The announcement for the withdrawal of notes was made by the Reserve Bank on May 19, 2023, after a considerable time since demonetization. According to the Reserve Bank of India’s data, the total value of INR 2000 notes in circulation as of March 31, 2018, was Rs. 6.73 lakh crore, making it the highest in circulation.
Introduction of INR 2000 Note in 2016
The INR 2000 note entered the market in November 2016 when Prime Minister Narendra Modi declared the discontinuation of INR 500 and INR 1000 notes. In place of these notes, new INR 500 and INR 2000 notes were introduced. The RBI had halted the printing of INR 2000 notes in 2019. By March 31, 2018, the total value of INR 2000 notes in circulation reached Rs. 6.73 lakh crore, marking the peak of circulation.
