The Reserve Bank of India (RBI) has released the latest update on the withdrawal of ₹2000 denomination banknotes from circulation. According to the RBI’s press release dated January 01, 2026, a massive 98.42% of the ₹2000 notes in circulation as of May 19, 2023 have now been returned to the banking system.
Background: ₹2000 Note Withdrawal
The RBI had announced the withdrawal of ₹2000 denomination banknotes through Press Release 2023-2024/257 on May 19, 2023. The move was part of the central bank’s currency management strategy and aimed at improving the quality and efficiency of currency circulation.
Facility at Bank Branches Ended in October 2023
Initially, the public was allowed to deposit or exchange ₹2000 banknotes at all bank branches across the country. However, this facility was available only up to October 07, 2023. After this date, bank branches stopped accepting ₹2000 notes for exchange or deposit.
RBI Issue Offices Continue to Accept ₹2000 Notes
The RBI clarified that the facility to exchange ₹2000 banknotes at its 19 Issue Offices has been available since May 19, 2023.
Further, from October 09, 2023, RBI Issue Offices also began accepting ₹2000 notes for deposit directly into bank accounts of individuals and entities.
To make the process easier, the RBI also enabled the option of sending ₹2000 notes through India Post. Members of the public can send these banknotes from any post office in India to any RBI Issue Office, and the amount is credited to their bank accounts.
₹2000 Notes in Circulation Drop Sharply
At the time of the withdrawal announcement on May 19, 2023, the total value of ₹2000 banknotes in circulation stood at ₹3.56 lakh crore.
As per the RBI’s latest data, this amount has fallen sharply to ₹5,609 crore as on January 31, 2026.
This significant decline shows that almost the entire stock of ₹2000 notes has already been returned to the banking system.
₹2000 Banknotes Still Legal Tender
The RBI has once again clarified that ₹2000 denomination banknotes continue to be legal tender. This means that holding or using ₹2000 notes is not illegal, even though they are no longer being issued.
What Should Holders of ₹2000 Notes Do?
People who still possess ₹2000 notes can:
- Visit any RBI Issue Office for exchange
- Deposit the notes into their bank accounts at RBI Issue Offices
- Send the notes via India Post to an RBI Issue Office for account credit
Official Statement Issued By:
Brij Raj, Chief General Manager
Reserve Bank of India