RBI says 88 pc of Rs 2,000 banknotes returned to banks till July 31

BENGALURU: The Reserve Bank of India (RBI) has said that 88 per cent of the Rs 2,000 banknotes that were in circulation as of May 19 this year, when the withdrawal of the currency notes was announced, have been returned to banks as of July 31.

In a press release, the RBI said that when it announced the withdrawal of the Rs 2,000 banknotes on May 19, the total value of the Rs 2,000 banknotes in circulation had declined to Rs 3.56 lakh crore at the close of business on that day, as against Rs 3.62 lakh crore which was in circulation on March 31 this year.

According to the data received from the banks, the total value of Rs 2,000 banknotes received back from circulation is Rs 3.14 lakh crore up to July 31. Consequently, Rs 2,000 banknotes in circulation at the close of business on July 31 stood at Rs 0.42 lakh crore. Thus, 88 per cent of the Rs 2,000 banknotes in circulation, as on May 19, 2023, have since been returned, the press release said.

Data collected from major banks indicates that out of the total banknotes of Rs 2,000 denomination received back from circulation, about 87 per cent is in the form of deposits and the remaining around 13 per cent has been exchanged into other denomination banknotes.

Citizens are requested to utilise the next two months to deposit and/or exchange the Rs 2,000 banknotes held with them to avoid any rush in the last few days before September 30, the release added.