Two years after the Reserve Bank of India (RBI) announced the withdrawal of ₹2,000 denomination banknotes, official data shows that notes worth ₹6,181 crore are still in circulation as of May 31, 2025. The central bank disclosed these figures in a statement released on Monday, June 2, 2025.

Despite the withdrawal decision, ₹2,000 notes continue to be legal tender, meaning they are still valid for transactions even though their circulation is significantly reduced.

₹2,000 Note Withdrawal: Key Timeline

The withdrawal of ₹2,000 denomination banknotes was first announced by the RBI on May 19, 2023. At that time, the total value of ₹2,000 notes in circulation was ₹3.56 lakh crore.

Since then, the RBI reports that 98.26% of the ₹2,000 notes in circulation have been returned, either through exchange or deposit, bringing the remaining figure down to ₹6,181 crore.

The initial deadline for deposit and/or exchange at commercial bank branches was October 7, 2023. However, recognising that a small percentage of high-denomination notes may still remain with the public, the RBI has continued to provide specific facilities for handling these notes.

Where Can ₹2,000 Notes Still Be Deposited?

Though general exchange at commercial banks was halted after October 7, 2023, the RBI continues to facilitate the return of these notes through alternative channels:

• RBI's 19 Issue Offices: Individuals and entities can visit designated RBI offices across India to deposit ₹2,000 notes into their bank accounts.

• India Post Facility: People can send ₹2,000 notes by post from any post office in the country to any RBI issue office, along with proper documentation, to have the amount credited directly to their bank account.

This dual-channel mechanism is intended to simplify the return process and ensure that no citizen is unfairly burdened.

Public Response and Currency Management

The near-complete return of the high-value notes indicates a largely successful currency management effort by the RBI. By gradually phasing out the ₹2,000 notes while maintaining their legal tender status, the central bank avoided the disruptions witnessed during the 2016 demonetisation.

The decision to withdraw ₹2,000 notes was taken for multiple reasons, according to the RBI. These included:

• Limited usage of ₹2,000 notes in day-to-day transactions

• Concerns over hoarding and illicit usage

• The goal of clean note policy, ensuring the continued circulation of lower denomination notes in good condition

Public Still Holding High-Value Notes?

Even with the high rate of return (98.26%), the remaining ₹6,181 crore in ₹2,000 notes suggests that:

• Some notes may still be with individuals who were unaware of the withdrawal or could not deposit them earlier.

• Others may be stored or hoarded, either for emergency use or due to lack of knowledge about current exchange options.

• A small portion might be damaged, lost, or inaccessible for various reasons.

The RBI has urged all holders of such notes to utilise the existing facilities and return them at the earliest.

Legal Tender Status Remains

Importantly, the ₹2,000 notes remain legal tender, meaning they can still be used to pay for goods and services, even though most merchants and vendors may no longer accept them routinely due to the note’s declining prevalence.

The RBI has not specified any deadline to revoke their legal tender status, which distinguishes this move from demonetisation, where currency ceased to be valid overnight.

Conclusion

The ₹2,000 note withdrawal has seen effective implementation so far, with only 1.74% of the original ₹3.56 lakh crore still in circulation. The RBI’s measured approach, providing continued access for deposits and exchanges, has allowed the public sufficient time and flexibility to return the notes.

With over ₹6,000 crore still circulating, however, the central bank is likely to step up awareness campaigns to encourage the return of the remaining currency. As the RBI continues to modernise currency management and enhance digital and lower denomination usage, the eventual phase-out of the ₹2,000 note may become a milestone in India’s transition to a leaner and cleaner currency syste

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