2024-11-04 13:16:00
The total value of Rs 2000 banknotes in circulation was Rs 3.56 lakh crore at the close of business on May 19, 2023. It has declined to Rs 6,970 crore at the close of business on October 31, 2024, the RBI said.
“Thus, 98.04 per cent of the Rs 2000 banknotes in circulation as on May 19, 2023, has since been returned,” it said in a statement.
The facility for deposit and/or exchange of the Rs 2000 banknotes was available at all bank branches till October 7, 2023. However, this facility is still available at the 19 issue offices of the Reserve Bank.
From October 9, 2023, the RBI issue offices are also accepting Rs 2000 banknotes from individuals and entities for deposit into their bank accounts.
Further, members of the public can also send Rs 2000 banknotes through India Post from any post office within the country to any of the RBI issue offices for credit to their bank accounts. The 19 RBI offices depositing/exchanging the banknotes are in Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram.
The Rs 2000 banknotes were introduced in November 2016, following the demonetisation of the then-prevailing Rs 1000 and Rs 500 banknotes.
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**Interview with RBI Expert, Dr. Anjali Sharma**
*Host:* Welcome back to our segment on the financial updates in India. Today, we have an exciting Alex Reed, Dr. Anjali Sharma, an economist and an expert on Indian monetary policy. Thank you for joining us, Dr. Sharma.
*Dr. Sharma:* Thank you for having me!
*Host:* Let’s dive right in. The Reserve Bank of India recently reported that 98.04% of the ₹2000 banknotes have been returned to the banking system since the withdrawal announcement. What does this indicate about the public’s response?
*Dr. Sharma:* This response shows a surprising level of compliance and adaptability from the public. The swift return suggests that most individuals were willing to exchange their notes for smaller denominations or deposit them, reflecting confidence in the banking system.
*Host:* That’s quite significant. The RBI mentioned that only ₹6,970 crore worth of ₹2000 notes are still in circulation. With such a large sum still held by the public, do you anticipate any potential issues in the near future?
*Dr. Sharma:* It’s important to note that while this amount seems high, it represents a small fraction of the ₹3.56 lakh crore that was originally in circulation. The RBI is allowing exchanges at its issue offices, which helps alleviate potential friction. However, if a significant amount of cash remains unreturned, it could lead to concerns regarding black money if not monitored properly.
*Host:* Interesting point. The RBI’s policy allowed the exchange up to ₹20,000 at a time. Do you think this limit is sufficient to facilitate the return of the remaining notes?
*Dr. Sharma:* Yes, I believe it strikes a balance. It allows for a practical exchange process without overwhelming the banking system. However, it may be beneficial for the RBI to monitor the flow and consider potential adjustments if the exchange process begins to slow down significantly.
*Host:* Lastly, what impact do you think this withdrawal will have on the Indian economy moving forward?
*Dr. Sharma:* The withdrawal of high-denomination notes can lead to increased digital transaction adoption, which is a step towards a more transparent economy. In the long run, this could help to curb the circulation of black money and enhance tax compliance, boosting government revenues.
*Host:* Thank you, Dr. Sharma, for sharing your insights. It will be interesting to see how this situation evolves.
*Dr. Sharma:* Thank you for having me. It’s a pleasure to discuss such important developments.
*Host:* And that wraps up our discussion for today. Stay tuned for more updates.
