New Delhi – Reserve Bank Governor Shaktikanta Das announced on Friday that the Rs 2,000 denomination notes are making a comeback, with only Rs 10,000 crore worth of such notes still in circulation. Das expressed confidence that these remaining notes will also be returned or deposited back into the banking system.
“Rs 2,000 notes are coming back and only Rs 10,000 crore is left in the system. The expectation is that the amount will also come back,” Das stated during an event in New Delhi.
Earlier this month, Das revealed that 87% of the Rs 2,000 denomination notes that were being withdrawn have been returned as deposits into banks, while the rest have been exchanged across counters.
On May 19, the Reserve Bank of India (RBI) surprised the financial world by announcing its plan to phase out the Rs 2,000 note, which was introduced in 2016 as part of a rapid remonetization effort. This decision followed Prime Minister Narendra Modi’s announcement to invalidate the Rs 500 and Rs 1,000 notes, thereby withdrawing more than 88% of the currency in circulation.
Initially, the public and entities holding such notes were given until September 30 to either exchange or deposit them in bank accounts. However, the deadline was extended to October 7. On October 7, both deposit and exchange services at bank branches were discontinued.
Beginning October 8, individuals were given the choice of either exchanging the currency or having the equivalent amount credited to their bank accounts at 19 RBI locations. At the RBI offices, individuals or entities can exchange Rs 2,000 bank notes up to a limit of Rs 20,000 at a time. There is no limit on the total amount that can be credited into bank accounts in the form of Rs 2,000 notes.
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