The Reserve Bank of India (RBI) has been phasing out the high-denomination Rs 2,000 note since May as part of a rapid remonetization effort, leading to queues at RBI offices. The initiative began in 2016 under Prime Minister Narendra Modi, with the demonetization of Rs 500 and Rs 1,000 notes that withdrew over 88% of the currency in circulation.
The public was initially asked to deposit or exchange these high-denomination notes at banks by September 30, an instruction that was later extended to October 7. However, after this date, deposit and exchange services at banks were discontinued. Individuals are now able to exchange their Rs 2,000 notes or have them credited to their bank accounts at any of the 19 RBI offices up to a limit of Rs 20,000 per transaction.
As part of the remonetization effort, new Rs 500 notes were also introduced. RBI Governor Shaktikanta Das disclosed that approximately Rs 3.43 lakh crore worth of these high-denomination notes have been returned, with about Rs 12,000 crore still actively circulating.
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