RBI releases Status of Withdrawal of Rs. 2000 banknotes

RBI releases - Status of Withdrawal of Rs. 2000 banknotes - Withdrawal of Rs. 2000 banknotes- 2000 banknotes - taxscan

The Reserve Bank of India has released the current status of the withdrawal of Rs. 2000 denomination banknotes from circulation.

The RBI made an announcement on May 19, 2023, regarding the withdrawal of ₹2000 banknotes from circulation. As of March 31, 2023, the total value of ₹2000 banknotes in circulation was ₹3.62 lakh crore. However, by the end of business on May 19, 2023, the value had decreased to ₹3.56 lakh crore.

Based on the information provided by the banks, the total value of ₹2000 banknotes that were returned from circulation after the announcement on May 19 amounted to ₹2.72 lakh crore as of June 30, 2023. Consequently, the remaining value of ₹2000 banknotes in circulation by the end of business on June 30 was ₹0.84 lakh crore. This means that 76% of the ₹2000 banknotes that were in circulation as of May 19, 2023, have been returned.

The data gathered from prominent banks reveals that approximately 87% of the total ₹2000 denomination banknotes that were withdrawn from circulation have been returned in the form of deposits. The remaining 13% of the banknotes have been exchanged for banknotes of other denominations.

The public is urged to utilize the upcoming three months to deposit or exchange the ₹2000 banknotes they possess in order to avoid any last-minute rush before September 30, 2023.

Meanwhile, public interest litigation was filed before the Delhi High Court regarding the same. However, both PILs were rejected by the bench of Justice Satish Chandra and Justice Subramonium Prasad.

Rajneesh Baskar Gupta, the petitioner, argued that the Reserve Bank of India (RBI) lacks the authority to withdraw the Rs. 2000 banknotes from circulation, asserting that such decisions are solely entrusted to the central government.

Read More: Delhi HC dismisses Plea challenging RBI’s decision to withdraw Rs. 2000 banknotes from Circulation

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