The Reserve Bank of India (RBI) spent a total of Rs 17,688 crore for printing Rs 2,000 denomination banknotes since it was brought into circulation in 2016, Union Minister of State for Finance, Pankaj Chaudhary said on Monday.
The central bank issued Rs 2,000 banknotes in November 2016 following the Centre’s decision to demonetize currency notes of denominations Rs 500, and Rs 1,000.
Approximately 89 per cent of the Rs 2,000 denomination currency notes were issued before March 2017 and are nearing the end of their useful life, which is about four to five years, according to Chaudhary in a written response to a question in the Lok Sabha.
“The stock of banknotes in other denominations continues to be adequate to meet the currency requirements of the public,” the response read.
Public sector banks spent around Rs 32 crore to recalibrate ATMs to accommodate Rs 2,000 currency notes. To recalibrate its ATMs, the State Bank of India spent around Rs 12.8 crore, Chaudhary said.
The total value of Rs 2,000 banknotes in circulation stood at around Rs 7.4 lakh crore from fiscals 2017-19, according to the RBI. In the following years, the apex bank did not print any new Rs 2,000 denomination notes.
The central bank had announced a withdrawal of these notes from circulation on May 19 under the Clean Note policy, and issued instructions to citizens to deposit or exchange Rs 2,000 notes at bank branches until September 30. The deadline was later extended by a week to October 7.
The total value of the Rs 2,000 banknotes in circulation stood at Rs 3.56 lakh crore, compared to Rs 9,760 crore in circulation as of November 30, according to the RBI.
Chaudhary said that the returned banknotes “are being processed in (the) RBI as per the laid-down procedure for disposal.”
The RBI has stressed that Rs 2,000 currency notes continue to remain legal tenders. From May 19, depositors can exchange Rs 2,000 banknotes for only up to Rs 20,000 at one time at the RBI’s 19 issue offices.
Beyond the October 7 deadline, depositors can continue to exchange the currency notes at the RBI’s issue offices as well as send the bills through India Post.c
