The Reserve Bank of India’s ambitious drive to withdraw the ₹2000 denomination from circulation appears to be nearing its end, with over 98% of the banknotes returned since the announcement on May 19, 2023. In its latest press release on February 03, 2025, the central bank revealed that the value of outstanding ₹2000 banknotes has plummeted from ₹3.56 lakh crore to a mere ₹6,471 crore.
The withdrawal process, initiated through Press Release 2023-2024/257, initially allowed deposit and exchange facilities at all bank branches across the country until October 07, 2023. Following this period, the RBI streamlined the process by designating its 19 Issue Offices as the sole venues for exchange. Since May 19, 2023, these offices have been equipped to handle the deposit of ₹2000 banknotes, and from October 09, 2023, they have also accepted banknotes directly from individuals and entities into their bank accounts. Additionally, the RBI has enabled public submissions via India Post from any post office within the country, further easing the process.
Despite the withdrawal efforts, the ₹2000 banknotes remain legal tender. The dramatic reduction in circulation underscores the effectiveness of the RBI’s measures and reflects the commitment of both financial institutions and the public in adapting to the new currency regime.
With the withdrawal almost complete, the RBI’s periodic updates continue to reassure the public that the process is progressing smoothly, marking a significant milestone in India’s ongoing efforts to streamline its currency system.