RBI reports 98% of Rs 2,000 notes returned since withdrawal

RBI Reports: Over 98 per cent of Rs 2,000 denomination notes returned since RBI 's decision to withdraw them in May 2023; the Value of these circulation has dwindled to Rs 7,117 crore from as high as Rs 3.56 lakh crore.

The surprise decision of the RBI to withdraw the Rs 2,000 notes on May 19, 2023, is quality-related to the currency notes. The first release after the demonising move, which ran in November 2016, to curb black money and promote cashless economy activities, had made the withdrawal process clear about the stand taken by the RBI which is that the Rs 2,000 notes continue to be valid tender and can still be used for the transactions till they are fully phased out.

The RBI has also established facilities at 19 of its issue offices all over the country for those who want to swap their Rs 2,000 notes. One can approach them in person or send them by post which will be credited to bank accounts and smoothen out the still-holding currency transition.

This high rate of return reflects not only the will of the public to abide by the withdrawal plan of the RBI but also reflects the current changes in India's currency.

As the central bank seeks to control the supply of the currency and issue quality, this scenario reminds it that with financial system changes, there needs to be a step to adjust it. By these measures, the RBI could also create confidence in India's currency in its entire economy.