The RBI has released new data regarding the withdrawal of ₹2000 notes. Since the announcement of the withdrawal in May 2023, 98.37% of the notes have been returned to the system.
Now, only ₹5,817 crore worth of ₹2000 notes remain in circulation, but these notes are still legal tender. The Reserve Bank of India has released the latest update on the withdrawal of ₹2000 notes. According to the RBI, when these notes were announced for withdrawal on May 19, 2023, their total value was ₹3.56 lakh crore. However, by October 2025, almost all of the notes have been returned.
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Interestingly, ₹2000 notes are still legal tender. This means that anyone who has ₹2000 notes left can still deposit them in a bank.
The ₹2000 note was introduced after demonetization in November 2016. Its purpose was to facilitate easy transactions of large sums of money. However, over time, the availability of smaller denomination notes increased, and the use of ₹2000 notes declined.
The RBI announced in May 2023 that it would phase out ₹2,000 notes and gradually remove them from circulation. This move was seen as a currency management reform.
Now only 1.63% notes are left in circulation.
The RBI stated that by October 31, 2025, the total value of ₹2000 notes in circulation was only ₹5,817 crore. This means that almost all of these notes have returned to the system. By October 31, 2025, ₹5,817 crore worth of ₹2000 notes, or approximately 98.37% of the notes, had returned to the system. Now, only 1.63% of the notes remain in circulation. These are the notes that are likely lying in people’s homes, shops, or lockers.
Where and how can I exchange ₹2000 notes?
The RBI had allowed the exchange and deposit of ₹2000 notes at all commercial banks until October 7, 2023. After that, this facility was only available at the RBI’s 19 Issue Offices. Anyone still holding a ₹2000 note can deposit it into their bank account in two ways: by directly visiting an RBI Issue Office or by visiting one of the 19 RBI offices across India.
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What will be the next step of RBI?
Following this update from the RBI, it’s clear that the era of ₹2000 notes is nearly over. Experts believe the RBI will now focus more on smaller denominations and digital transactions. UPI payments, digital banking, and QR-based transactions have significantly reduced the need for cash in India. Consequently, the role of high-value notes has diminished significantly.
Why was the withdrawal of ₹2000 note necessary?
Many economists believe that ₹2000 notes were used more for cash hoarding than for general transactions. Therefore, demonetizing these notes was a wise move. The RBI itself stated that ₹2000 notes were now used for limited purposes. Now, ₹500 and ₹200 notes are the most widely used.
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