ArdorComm Media News Network
June 4, 2025
The Reserve Bank of India (RBI) has announced that over 98% of the ₹2000 denomination banknotes have been returned to the banking system, nearly two years after their phased withdrawal was initiated in May 2023.
According to the latest RBI update released on May 2, 2025, the total value of ₹2000 notes in circulation has plummeted from ₹3.56 lakh crore on May 19, 2023—the date the withdrawal was declared—to just ₹6,181 crore as of May 31, 2025. This indicates that 98.26% of the high-value notes have been successfully absorbed back into the formal banking channel.
Initially, banks across the country facilitated the exchange or deposit of ₹2000 notes until October 7, 2023. Post this deadline, the facility has continued through the RBI’s 19 Issue Offices, where individuals and entities can still deposit the notes into their bank accounts. Since October 9, 2023, these offices have been exclusively handling such transactions.
Additionally, the RBI allowed people to send ₹2000 notes via India Post from any post office, enabling direct credit into their bank accounts through designated RBI offices—a move that added convenience for those in remote or rural areas.
Importantly, while the notes have been withdrawn from circulation, the RBI has clarified that the ₹2000 denomination remains legal tender. The decision to withdraw the notes was part of the central bank’s broader currency management strategy aimed at optimizing the denomination structure and curbing hoarding of high-value currency.
The RBI continues to monitor and report on the status of the withdrawal process, ensuring transparency and public awareness throughout the transition.
Source: DD News