Rs 2000 Notes Circulation Crashes 97% Post Withdrawal Call
The Reserve Bank of India (RBI) recently published current data indicating that the total value of Rs 2000 currency notes active in circulation has shrunk by a staggering 97.6% as of February 2024 compared to levels preceding their usage discouragement announcement made in May 2023.
The outstanding Rs 2000 notes in supply as on May 19th date when withdrawal call first came was to the tune of Rs 3.56 lakh crore but steeply declined to only around Rs 8470 crore at February-end – clear sign the high value paper fading fast.
Public Acceptance of Decision Evident
The RBI while stating Rs 2000 notes stay legitimate had offered exchange options initially, which seems to have witnessed strong patronage from masses as figures confirm. With higher denomination bills rarely used in everyday transactions, individuals possibly found it convenient redeeming these.
This reinforces public acceptance of the planned phase-out through responsibly liquidating holdings. But the central bank stays legally obligated to honor all old Rs 2000 notes presented for the foreseeable future at its counters or bank branches as is the norm.
Note circulation value drops by Rs 3.47 lakh crore
With the RBI periodically publishing currency usage data openly, the latest statistics were crucial indicator to measure effectiveness of its offloading campaign around the high value, controversially launched post-demonetization Rs 2000 bills.
