The ₹2000 denomination banknotes were introduced on November 10, 2016 under Section 24(1) of Reserve Bank of India (RBI) Act, 1934, to expeditiously meet the currency requirement of the economy post withdrawal of legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time. This was stated by Union Minister of State for Finance Shri Pankaj Chuadhary in a written reply to a question in Rajya Sabha today.

The Minister stated that vide RBI’s Press Release dated 19.05.2023 (https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=55707), RBI has conveyed that 89% of ₹2000 denomination notes were issued prior to March 2017 and are close to the end of their useful life which spans from 4-5 years. According to Pan-India survey of public conducted by RBI, ₹ 2000 denomination banknotes are no longer preferred for transactions. Further, the Minister stated, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public. In view of above and in pursuance of RBI’s “Clean Note Policy”, it was decided by RBI to withdraw the ₹2000 denomination banknotes from circulation.

Giving more information, as per RBI, the data on ₹2000 denomination banknotes in circulation (volume and value) for the years 2016 to 2023 as on end March each year is as follows:

Banknotes of ₹2000 denomination in Circulation since 2016
Year	Volume (crore pieces)	Value (₹ crore)
2016	-	-
2017	329	6,57,063
2018	336	6,72,642
2019	329	6,58,199
2020	274	5,47,952
2021	245	4,90,195
2022	214	4,28,394
2023	181	3,62,220

As per RBI, the Minister stated, the details of the volume and value of ₹2000 denomination banknotes in circulation and banknotes returned from circulation post withdrawal of ₹2000 currency notes are as follows:

₹2000 Denomination	Volume (crore pieces)	Value (in lakh crore)
Circulation as on May 19, 2023	177.93	3.56
Circulation as on June 30, 2023	41.80	0.84
Banknotes returned from Circulation since May 19, 2023 till June 30, 2023	136.13	2.72

Giving more information, the Minister stated that as per RBI, the data on ‘Total Deposits outstanding’ and ‘Gross Loans and advances outstanding’, as reported by the Scheduled Commercial Banks, is as follows:

As on	Total Deposits outstanding		Gross Loans and Advances outstanding
	(Values) (in Rs crore)	(Growth_YoY) (in %)	(Values) (in Rs crore)	(Growth_YoY) (in %)
31 March, 2022	1,71,72,755	10.17	1,27,50,006	11.85
30 June, 2022	1,71,77,836	10.05	1,30,94,857	15.53
30 September, 2022	1,77,42,610	10.84	1,36,92,970	18.63
31 December, 2022	1,81,43,432	11.27	1,41,30,450	16.77
31 March, 2023	1,90,56,113	10.97	1,47,57,129	15.74

 

High-denomination banknote withdrawal phases out a long-circulated note due to lifecycle concerns and public dispreference. Withdrawal of Rs2000 denomination banknotes was effected pursuant to findings that most notes were issued before March 2017 and have reached the end of their useful life, and that public surveys show the denomination is no longer preferred for transactions. The action, taken under the RBI's Clean Note Policy, notes that substantial volumes have been returned since the withdrawal notice and that the supply of other denominations is adequate to meet public currency needs.