The Reserve Bank of India has withdrawn 98.41% of Rs 2000 denomination banknotes from circulation, nearly three years after the high-value note was officially discontinued. Despite the withdrawal, the Rs 2000 note continues to remain legal tender, with exchange and deposit facilities still available through RBI offices.
In an official statement issued on Friday, the central bank said the total value of Rs 2000 banknotes in circulation has declined sharply to Rs 5,669 crore as of December 31, 2025. This is a steep fall from Rs 3.56 lakh crore recorded on May 19, 2023, when the RBI announced the withdrawal of the note from circulation.
The RBI reiterated that the exchange facility for Rs 2000 banknotes has been available at its 19 issue offices across the country since May 19, 2023. From October 9, 2023, individuals and entities have also been permitted to deposit Rs 2000 notes directly into their bank accounts at RBI issue offices.
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In addition, members of the public can send Rs 2000 banknotes via India Post from any post office in the country to designated RBI issue offices for credit to their bank accounts, the central bank said.
The sharp reduction in circulation reflects the success of the RBI’s calibrated withdrawal process, which was aimed at removing the note from active use without disrupting economic activity. The Rs 2000 note was originally introduced in 2016 following the demonetisation of Rs 500 and Rs 1000 banknotes.
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