97.5% of ₹2,000 notes returned to RBI, notes worth less than ₹9,000 crore now in circulation

In a recent update, the Reserve Bank of India revealed that a substantial 97% of the ₹2,000 denomination banknotes, which were withdrawn from circulation on May 19 last year, have already been returned.

The latest data, published on January 1, 2024, indicates that the total value of ₹2,000 banknotes in circulation has dwindled from ₹3.56 lakh crore on May 19, 2023, to ₹8,897 crore as of January 31, 2024.

The withdrawal process allowed for the deposit and exchange of ₹2,000 banknotes at all bank branches in the country until October 7, 2023. Subsequently, the 19 Issue Offices of the Reserve Bank have been accepting these banknotes for exchange since May 19, 2023, and for deposit from October 9, 2023.

Additionally, members of the public have been utilizing India Post to send ₹2,000 banknotes to RBI Issue Offices for crediting to their bank accounts.

Despite the significant return of these notes, the ₹2,000 banknotes remain legal tender. The decline in circulation is attributed to the withdrawal initiative announced by the RBI.

In a separate development, the RBI issued a cautionary advisory on Friday, urging the public to remain vigilant against fraudulent activities disguised as Know Your Customer updates.

This advisory follows a similar warning in September 2021, expressing concerns about frauds related to KYC updates. The central bank emphasized the need for individuals to exercise caution and due care to prevent falling victim to such malicious practices.

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