98% of ₹2000 notes returned, ₹6,181 crore still in circulation: RBI

Nearly two years after the Reserve Bank of India (RBI) announced the withdrawal of ₹2000 denomination banknotes, notes worth ₹6,181 crore remain in circulation, the central bank said on Monday.

As per the latest update from the RBI, the value of ₹2000 notes in circulation has plunged by 98.26% from ₹3.56 lakh crore on May 19, 2023, when the withdrawal was announced, to ₹6,181 crore as of May 31, 2025.

While the ₹2000 note continues to be legal tender, the RBI has stopped printing the denomination and removed it from active circulation as part of its currency management strategy.

Initially introduced in 2016 following the demonetisation of ₹500 and ₹1000 notes, the ₹2000 note was meant to meet the urgent need for high-value currency. Over time, the central bank cited reasons such as low usage in daily transactions and concerns about hoarding for its withdrawal.

The facility for deposit or exchange of ₹2000 banknotes at bank branches was available until October 7, 2023. Since then, exchanges have been allowed only at 19 RBI Issue Offices. People can also send these notes via India Post to any of the Issue Offices for credit to their bank accounts.

According to the RBI's Annual Report for 2024-25, the central bank has stopped printing ₹2, ₹5 and ₹2000 denomination banknotes, although they are still in circulation.

The ₹500 denomination continues to dominate currency circulation, accounting for 86% of total value and 40.9% by volume in 2024-25. Meanwhile, ₹10 notes and coins remain widely circulated, with the RBI adding 238.7 crore ₹10 coins while reducing the number of ₹10 notes by 85 crore during 2023-25.

The report also noted a decline in the number of counterfeit notes detected in most denominations, including ₹2000, during FY25. However, cases involving ₹200 and ₹500 notes saw a rise of 13.9% and 37.3%, respectively.

In parallel with efforts to modernise currency circulation, the RBI has expanded its central bank digital currency (CBDC)-Retail pilot to 60 lakh users across 17 banks, introducing offline and programmable features. The value of the digital rupee in circulation jumped 334% during FY25.