77% of Rs 2,000 notes returned by users to banks as of June 30: FinMin

The number of Rs 2,000 notes in circulation fell to 418 million in volume terms on June 30, from 1.77 billion on May 19, the ministry said

Nearly 77 per cent of the Rs 2,000-denomination currency notes have been deposited in banks, the Ministry of Finance said on Monday.

It said that the number of Rs 2,000 notes in circulation fell to 418 million in volume terms on June 30, from 1.77 billion on May 19.

The value of these notes in circulation fell to Rs 84,000 crore on June 30 from Rs 3.56 trillion on May 19, the ministry added.

On May 19, the RBI decided to withdraw the Rs 2,000 denomination banknotes from circulation while maintaining their legal tender status. The RBI, on the other hand, advised banks to stop issuing such banknotes immediately and said that all Rs 2,000 currency notes must be exchanged before September 30, 2023.

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The Rs 2,000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934, primarily to meet the economy's currency requirements in a timely manner following the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at the time.

The objective of introducing Rs 2,000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of Rs 2,000 banknotes was stopped in 2018-19.

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