New Delhi: The Reserve Bank of India (RBI) has reiterated that ₹2,000 banknotes continue to be legal tender and can still be deposited or exchanged through its designated Issue Offices, nearly three years after the denomination was withdrawn from circulation.

While banks stopped accepting deposits and exchanges of ₹2,000 notes in October 2023, the RBI continues to offer the facility through its 19 Issue Offices across the country. The central bank has also reported that over 98 per cent of the withdrawn currency has already been returned to the banking system.

₹2,000 notes remain legal tender

The RBI clarified that ₹2,000 banknotes remain valid for transactions despite being withdrawn from circulation.

The central bank announced the withdrawal of the denomination on May 19, 2023, as part of its currency management exercise. However, the withdrawal did not affect the legal tender status of the notes, meaning they can still be used for payments wherever accepted.

The ₹2,000 note was introduced in November 2016 following the demonetisation of the old ₹500 and ₹1,000 notes to quickly replenish cash in the economy.

According to the RBI, the denomination had largely fulfilled the objective for which it was introduced, prompting the decision to gradually withdraw it from circulation.

How to exchange or deposit ₹2,000 notes

The facility to exchange or deposit ₹2,000 banknotes at all commercial bank branches remained available until October 7, 2023.

After that date, these services have been provided exclusively through the RBI.

People holding ₹2,000 notes can:

  • Exchange them at any of the RBI’s 19 Issue Offices.
  • Deposit the notes directly into their bank accounts through these Issue Offices.
  • Send the banknotes through India Post from any post office to an RBI Issue Office, after which the value will be credited to their bank account.

The RBI has advised people to follow the prescribed procedures while using the postal facility.

Nearly all ₹2,000 notes returned

According to RBI data, the value of ₹2,000 banknotes still in circulation has declined substantially since the withdrawal announcement.

The total value of ₹2,000 notes in circulation stood at ₹3.56 lakh crore on May 19, 2023.

By April 30, 2026, that figure had fallen to ₹5,451 crore, indicating that the overwhelming majority of the notes have been returned to the banking system.

The RBI said 98.47 per cent of all ₹2,000 banknotes that were in circulation at the time of the withdrawal announcement have now been deposited or exchanged.

Currency management exercise

The withdrawal of the ₹2,000 denomination was part of the RBI’s currency management strategy and was not equivalent to demonetisation.

Unlike the demonetisation exercise of 2016, the ₹2,000 notes continue to retain their legal tender status, allowing holders to exchange or deposit them without any deadline having been announced for RBI Issue Offices.

The central bank has reiterated that anyone still in possession of ₹2,000 notes can avail themselves of the exchange or deposit facility through the RBI’s designated Issue Offices or by sending the notes via India Post.

With only a small fraction of the original stock remaining in circulation, the RBI’s latest data indicate that the withdrawal exercise has been largely completed while ensuring that holders of the denomination continue to have access to authorised exchange and deposit facilities.