The Reserve Bank on Tuesday said 88 per cent of the Rs 2,000 banknotes valued at Rs 3.14 lakh crore have returned to the banking system after it announced withdrawal of the high value currency notes from circulation in May.

According to the data received from banks, the RBI said the total value of Rs 2,000 banknotes received back from circulation is Rs 3.14 lakh crore up to July 31, 2023.

“Consequently, Rs 2,000 banknotes in circulation as at the close of business on July 31 stood at Rs 0.42 lakh crore,” the central bank said in a statement.

As much as 88 per cent of the Rs 2,000 banknotes in circulation as on May 19, 2023, have since been returned.

The total value of Rs 2,000 banknotes in circulation, which amounted to Rs 3.62 lakh crore on March 31, 2023, had declined to Rs 3.56 lakh crore as at the close of business on May 19, 2023.

Out of the total banknotes in Rs 2,000 denomination received back from circulation, about 87 per cent came in the form of deposits and the remaining around 13 per cent has been exchanged into other denomination banknotes.

The Reserve Bank has urged the public to utilise the next two months to deposit and/or exchange the Rs 2,000 banknotes held with them to avoid any rush in the last few days before September 30, 2023.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)