The Reserve Bank of India (RBI) has said that up to May 31, 2025, almost 98.26 per cent of the banknotes of Rs 2,000 denomination have been deposited back.
When the decision to withdraw the notes was made on May 19, 2023, there were Rs 3.56 lakh crore worth of these notes in circulation. That number has now plummeted to a mere Rs 6,181 crore, it said.
Exchange and Deposit Facilities
Initially, individuals could deposit or exchange their Rs 2,000 currency notes at any bank branch till October 7, 2023.
Subsequently, from October 9, 2023, only 19 RBI Issue Offices located all over India provided this facility. One could also mail the Rs 2,000 notes to any of these offices for having the amount credited to their bank account in lieu of the deposited notes.
These channels are still available, thus allowing individuals across the country to deposit their notes back.
Still a Legal Tender
Although the Rs 2,000 note has been taken out of active circulation, it is still a legal tender. What this implies is that the public can still use it for payment purposes even though banks and ATMs no longer dispense it.
Why Were the Notes Withdrawn
The RBI had launched the Rs 2,000 note in 2016 following demonetisation, primarily to restore currency availability following the withdrawal of the then existing Rs 500 and Rs 1,000 notes. The withdrawal was considered a move towards curtailing the usage of high denomination notes and encouraging digital payments.
The central bank has been keeping the public updated on this withdrawal process on a regular basis, with the last update posted on June 2, 2025.
Collection Modes
Apart from transactions at RBI branches, the postal route has also gained popularity. Citizens all over the country have mailed their notes to RBI offices using India Post so that the central bank can credit their account with money in exchange of the deposited notes. This option has especially benefited citizens living away from large cities.
According to the RBI, only 1.74 per cent of the Rs 2,000 notes are still in circulation. However, there is no official word yet on when the note will stop being accepted as a legal tender. The RBI has further reassured the public that there is no need to rush, and that facilities for deposit and exchange will continue to remain available.
