RBI says 88% of Rs 2,000 notes worth Rs 3.14 lakh crore returned

Mangalore Today News Network

New Delhi, Aug 03, 2023: The Reserve Bank of India (RBI) revealed that 88 per cent of the country’s highest denomination Rs 2,000 currency notes, amounting to Rs 3.14 lakh crore, have been returned since the decision to withdraw them from circulation.

 

The RBI had announced in May that these high-value notes would be withdrawn, allowing exchange or deposit until September 30.

As of May 19, the total value of Rs 2,000 notes in circulation decreased to Rs 3.56 lakh crore from Rs 3.62 lakh crore at the end of the last fiscal year on March 31, according to the central bank’s statement.

Currently, Rs 420 crore worth of these notes remain in circulation.

Data collected from major banks indicates that about 87 per cent of the banknotes received by lenders were deposited, while approximately 13 per cent were exchanged for other denominations, the RBI said.

It may be noted that the high-value Rs 2,000 notes were introduced in 2016 after demonetisation, with the aim of replenishing cash in circulation.

Before finally announcing the withdrawal of Rs 2,000 notes earlier this year, the RBI had expressed its desire to reduce high-value notes in circulation. Notably, the printing of Rs 2,000 notes were stopped almost four years ago.

Courtesy: India Today