The Reserve Bank stunned the public on May 19 by announcing the withdrawal of Rs 2,000 notes from circulation, but allowed individuals until September 30 to deposit or exchange such notes at banks. According to the RBI, 76% of the Rs 2,000 currency notes in circulation have been either deposited or exchanged at banks. In terms of value, the circulation of Rs 2,000 notes has decreased from Rs 3.56 lakh crore on the day of the withdrawal announcement to Rs 84,000 crore as of June 30. The RBI stated that 87% of the returned notes have been deposited in bank accounts by the public, while the remaining 13% have been exchanged for other denominations. The minister further noted that the withdrawal was a planned currency management operation to avoid inconveniencing the public or disrupting the economy. Additionally, the withdrawal of Rs 2,000 banknotes has been accounted for in this year’s requirements, and sufficient buffer stock of other denominations is being maintained nationwide to meet exchange and withdrawal demands.
The Rs 2,000 denomination banknotes were introduced on November 10, 2016, to quickly meet the economy’s currency requirements following the demonetisation of all Rs 500 and Rs 1,000 banknotes in circulation at that time.