The ₹2000 banknotes continue to be legal tender.
97.62% of the ₹2,000 banknotes in circulation as on May 19, 2023, returned as on Feb-end 2024
The Reserve Bank of India (RBI) has said that 97.62 per cent of the ₹2,000 banknotes in circulation as on May 19, 2023, had been returned by February 29, 2024, with the remaining notes in circulation continuing to be legal tender.
The total value of ₹2000 banknotes in circulation, which was ₹3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of ₹2000 banknotes was announced, has declined to ₹8470 crore at the close of business on February 29, 2024. Thus, 97.62% of the ₹2000 banknotes in circulation as on May 19, 2023, has since been returned, according to RBI latest release. It added that The ₹2000 banknotes continue to be legal tender.
“About 89% of the ₹2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak as on March 31, 2018 (37.3% of Notes in Circulation) to ₹3.62 lakh crore constituting only 10.8% of Notes in Circulation on March 31, 2023. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.
In view of in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the ₹2000 denomination banknotes from circulation.