The Reserve Bank of India has confirmed that 98.42% of ₹2,000 currency notes have been returned to the banking system as of January 31, 2026. Only ₹5,609 crore worth of ₹2,000 notes are still held by the public.
The RBI reiterated that ₹2,000 notes remain legal tender. While the denomination is no longer issued or printed, the notes can still be used for transactions or deposited with the RBI under existing guidelines. The latest figures underline that the withdrawal exercise has been largely completed, with only a small fraction of the notes still in circulation.
What the Current Status Means for the Public
Although regular bank branches stopped accepting ₹2,000 notes after the deadline in October 2023, the RBI continues to provide options for those still holding the denomination.
People can:
- Deposit ₹2,000 notes at designated RBI Issue Offices
- Exchange limited amounts as per RBI norms
- Send notes via India Post to RBI offices for credit into bank accounts
The RBI has not announced any deadline for these facilities so far, reinforcing that the focus is on orderly withdrawal rather than invalidation.
Why the RBI Withdrew the ₹2,000 Note
The RBI announced the withdrawal of the ₹2,000 denomination on May 19, 2023, citing multiple reasons. The note was originally introduced to quickly restore currency supply after the 2016 demonetisation. Over time, however, it became less relevant for everyday transactions.
According to the RBI, lower denominations were sufficient to meet cash requirements, digital payments had increased significantly, and many ₹2,000 notes were nearing the end of their lifecycle under the central bank’s Clean Note Policy. As a result, the note was phased out from circulation without being demonetised.
Backstory: From 2016 Demonetisation to Gradual Phase-Out
The ₹2,000 note was introduced in November 2016 following the demonetisation of ₹500 and ₹1,000 notes. It was designed as a temporary, high-value denomination to ease currency shortages.
Over the years, concerns around usability, hoarding, and circulation patterns led to a gradual reduction in issuance. By 2023, the RBI formally began withdrawing the note, a process that is now close to completion.
