File photo of a customer exchanging banknotes at a bank. | Photo credit: AM FARUQUI
About 50% of the ₹2,000 banknotes in circulation as of March 31, 2022 have been deposited or exchanged in banks since the announcement of the withdrawal of the currency, according to Reserve Bank Governor Shaktikanta Das.
“So far, ₹1,80,000 crore of ₹2,000 banknotes have been deposited/exchanged,” Das said in a media interaction after posting the bi-monthly monetary policy here.
So far, about 85% of this amount has come from deposits. This is in line with expectations, the RBI chief said.
On May 19, the Reserve Bank of India (RBI) announced the withdrawal of ₹2,000 notes as part of its currency management and allowed the exchange of such notes (up to ₹20,000 at one time ) from May 23. The exchange or deposit window is available until September 30, 2023.
The Governor also urged the public not to panic over the exchange or deposit of ₹2,000 notes but should avoid last minute rush.
He also clarified that RBI was not planning to withdraw the ₹500 notes, or even reintroduce notes in the ₹1,000 denomination, and asked the public not to speculate on this.
Last month, the RBI Governor said the majority of ₹2,000 notes withdrawn should be returned to the banking system by the September 30 deadline.
(With PTI entries)