Since the announcement of their withdrawal last month, approximately 50% of the Rs 2,000 notes in circulation have been returned to the banking system, according to Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday.
During a press conference, Das expressed that, “As of March 31 this year, Rs 2,000 notes worth Rs 3.62 trillion were in circulation. After the announcement, so far about Rs 1.8 trillion worth of Rs 2,000 notes have come back.”
Das went on to say that 85 percent of the notes that have been returned have been in the form of bank deposits. The remainder was exchanged at various bank branches.
Based on a review, the RBI announced on 19 May that it would withdraw Rs 2,000 notes from circulation. However, banknotes in the denomination of Rs 2,000 will remain legal tender, according to the RBI.
“In view of the above, and in pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw the Rs 2,000 denomination banknotes from circulation,” the RBI said.
The Reserve Bank of India had advised the general public to deposit Rs 2,000 banknotes in their bank accounts. They also revealed that public can exchange them for banknotes of other denominations at any bank branch.