In a move that will reshape the currency landscape, the Reserve Bank of India (RBI) announced its withdrawal ₹2,000 denomination banknotes on May 19 last year. As we move towards a new financial era, it is important to understand the journey of these banknotes and the precautionary measures taken by the RBI.
RBI announcement released On January 1, 2024, it was revealed that an astonishing 97.38 percent of the ₹2,000 notes in circulation were successfully returned. The deadline for deposits and exchanges at bank branches was October 7, 2023, marking the end of an era for the vibrantly colored currency.
extended exchange opportunities
While the general public bid goodbye to ₹2,000 notes in bank branches, the RBI extended the exchange facility to its 19 issue offices from May 19, 2023. Moreover, from October 9, 2023, individuals and entities got the option to deposit these notes. into their bank accounts through RBI issue offices.
role of india post
Recognizing the country’s geographical diversity, the RBI allowed citizens to send ₹2,000 bank notes from any post office to RBI issuing offices through Indian Post for deposit in their bank accounts.
decline in circulation
The once ubiquitous ₹2,000 banknotes, whose value on May 19, 2023 totaled ₹3.56 lakh crore, saw a significant decline. As of January 31, 2024, the total value declined to ₹8,897 crore, indicating that 97.50 per cent of these notes have returned to the system.
legal tender status
Despite being out of circulation, it is important to note that the ₹2,000 banknotes retain their legal tender status. It is important to understand their continued validity to avoid any confusion in transactions.
caution against fraud
In view of these changes, RBI has reiterated its warning against frauds disguised as KYC updates. Building on similar advice from September 2021, the central bank emphasizes the importance of vigilance to prevent falling victim to fraudulent activities.