RBI has successfully collected 76% of Rs 2,000 notes, amounting Rs 2.72 lakh cr, by banks since May 19
RBI has successfully collected 76% of Rs 2,000 notes, amounting Rs 2.72 lakh cr, by banks since May 19
According to the Reserve Bank of India, on Monday, it was announced that following the withdrawal of Rs 2,000 notes on May 19, banks have received 76% of the high-denomination notes by June 30. The central bank further stated that the total value of the notes returned thus far amounts to Rs 2.72 lakh crore. This indicates a significant proportion of the withdrawn notes has been returned to the banking system within the given timeframe.
“The total value of Rs 2,000 banknotes in circulation, which amounted to Rs 3.62 lakh crore on March 31, 2023 had declined to Rs 3.56 lakh crore as at the close of business on May 19, 2023. According to the data received from the banks, the total value of Rs 2,000 banknotes received back from circulation after the announcement on May 19 is Rs 2.72 lakh crore up to June 30, 2023.
Consequently, Rs 2,000 banknotes in circulation as at the close of business on June 30 stood at Rs 84,000 crore. Thus, 76% of the Rs 2,000 banknotes in circulation as on May 19, 2023 have since been returned,” said RBI in a statement.
As per the Reserve Bank of India (RBI), data collected from leading banks reveals that out of the entire supply of Rs 2,000 denomination banknotes that were withdrawn from circulation, approximately 87% has been returned in the form of deposits.
The remaining approximately 13% has been exchanged for banknotes of other denominations. This indicates that the majority of the Rs 2,000 notes have been deposited back into the banking system, while a smaller portion has been exchanged for different denominations.
In a statement, It (RBI) has requested members of the public to make use of the upcoming three months to deposit and/or exchange their Rs 2,000 banknotes to prevent a last-minute rush in the days leading up to September 30, 2023. This proactive advisory aims to encourage individuals to take timely action and avoid any potential inconvenience or crowding that may arise closer to the deadline.
It has instructed banks to cease the issuance of Rs 2,000 denomination banknotes with immediate effect. However, it has also clarified that individuals will still have the option to deposit Rs 2,000 banknotes into their bank accounts or exchange them for banknotes of different denominations at any bank branch until September 30, 2023.
In terms of the exchange process, individuals have the option to exchange their Rs 2,000 banknotes for banknotes of different denominations at any bank branch. However, there is a maximum limit of Rs 20,000 per transaction for such exchanges.
This arrangement has been in effect since May 23, 2023, allowing individuals to conveniently convert their Rs 2,000 banknotes into smaller denominations as per their requirements.
The Reserve Bank of India (RBI) has stated that the introduction of Rs 2,000 denomination banknotes in November 2016 served the purpose of meeting the immediate currency requirements of the economy following the withdrawal of Rs 500 and Rs 1,000 banknotes from circulation. The intention was to ensure a swift replacement of the demonetized notes.
Once an adequate supply of banknotes in other denominations was achieved, the objective of introducing Rs 2,000 banknotes was fulfilled. As a result, the printing of Rs 2,000 banknotes was subsequently halted in the financial year 2018-19, as per the RBI’s statement.
Approximately 89% of the Rs 2,000 denomination banknotes were released before March 2017 and have now reached the end of their anticipated lifespan, which typically ranges from four to five years.
