RBI Says 98.26% of ₹2000 Notes Returned After Withdrawal
The Reserve Bank of India (RBI) has confirmed that 98.26% of ₹2000 denomination banknotes have been returned to the banking system, nearly two years after their withdrawal was announced in May 2023. From a peak circulation of ₹3.56 lakh crore, only ₹6,181 crore worth of ₹2000 notes remained in circulation as of 31 May 2025.
The central bank’s data signals a near-complete execution of the withdrawal plan, echoing a similar currency recalibration undertaken during the 2016 demonetisation exercise. However, unlike demonetisation, the ₹2000 note has not been rendered illegal. The RBI reiterated that the denomination continues to be legal tender, and citizens can still deposit or exchange these notes at 19 RBI Issue Offices across India and also send them via India Post.
The decision to withdraw the ₹2000 note was based on its limited usage in daily transactions and the aim to streamline the currency mix in circulation. After its introduction in 2016 to swiftly replenish currency post-demonetisation, the ₹2000 note had largely fallen out of common usage due to its high denomination and increasing concerns about its misuse.
The RBI’s strategic intent was to encourage smoother circulation of lower denomination notes and improve the overall currency management system. Despite the withdrawal, there was no abrupt ban or deadline on usage, ensuring a phased transition and avoiding the panic seen in 2016.
As India transitions into a more digital and lower-denomination currency economy, the near-complete return of the ₹2000 note indicates strong public compliance and trust in institutional processes. The RBI has not announced any plans to completely demonetise the note, keeping the legal tender status intact for residual holders.
