India’s highest-value banknote, the 2,000-rupee note, is set to be withdrawn in five days, but $2.9 billion worth of these notes are still in circulation. The Reserve Bank of India (RBI) mandated the withdrawal on May 19, allowing until the end of September for exchanges or deposits. After this period, individuals will need to provide an explanation for the delay.
As of September 1, 93% of the 2,000-rupee notes, equivalent to 3.32 trillion rupees ($40.14 billion or €37.7 billion), have been returned. However, 7% of the notes, valued at 240 billion rupees, are still in circulation.
Major banks report that approximately 87% of the notes received were deposited, while the remaining 13% were exchanged for other denominations, as stated by the RBI.
The 2,000-rupee notes were introduced in 2016 to replenish the currency in circulation following the government’s sudden demonetization move, which involved scrapping high-value banknotes overnight. Despite their introduction, the RBI has consistently expressed the intent to reduce the circulation of high-value notes, and production of 2,000-rupee notes ceased over the past four years.
*Note: India is set to withdraw the 2,000-rupee banknote, but $2.9 billion worth of them are still in circulation. The Reserve Bank of India (RBI) ordered the withdrawal in May, providing until the end of September for exchanges or deposits.
