RBI's Steady Curb on Rs 2,000 Notes Circulation

The Reserve Bank of India (RBI) announced a reduction in Rs 2,000 denomination notes in circulation, with Rs 74 crore returned in November. Since May 2023, following the RBI’s withdrawal notice, the notes have been exchanged through bank branches and postal services till October, maintaining legal tender status.

The Reserve Bank of India (RBI) declared on Monday that it has reclaimed an additional Rs 74 crore worth of Rs 2,000 denomination notes as of November. The currency's circulation has decreased to Rs 5,743 crore by November 29 from Rs 5,817 crore noted on October 31, the central bank reported.

The withdrawal of Rs 2,000 notes, first introduced post-demonetisation in 2016, was announced by the RBI in May 2023. Till October 7, 2023, all bank branches provided facilities for depositing and exchanging these notes. Subsequently, from October 9, the RBI's 19 Issue Offices have been receiving these notes for deposit into bank accounts.

The public utilizes India Post to send Rs 2,000 banknotes to RBI offices for account credits, according to an official statement. As of May 19, 2023, the Rs 2,000 notes in circulation equaled Rs 3.56 lakh crore, though they remain legal tender, the RBI emphasized.

(With inputs from agencies.)