The 2000 rupee note was introduced by the Reserve Bank of India on 8 November 2016. The introduction of this denomination of the Indian rupee was part of the government's demonetization exercise aimed at curbing corruption, black money and counterfeit currency. On the same day, the Indian government announced the demonetization of the existing 500 rupee and 1000 rupee notes. The intention behind demonetization was to invalidate the old notes to disrupt illegal activities and promote a shift towards digital transactions.
Initially, the circulation of the 2000 rupee note was limited due to the demonetization exercise and the subsequent re-calibration of ATMs and cash distribution systems. However, as the process unfolded, the note became more widely available for circulation. On 19 May 2023, the Reserve Bank of India announced its decision to withdraw the ₹2,000 notes from circulation.[1]
History
Obverse of the ₹2000 banknote between October 2016 – November 2023
This was the highest currency note printed by RBI that was in active circulation, ever since the 1,000 rupee note was demonetised in November 2016.[3][4][5] Before the official announcement by RBI, the media reported that ₹2000 notes had been printed from the currency printing press in Mysuru by the end of October 2016.[6] Post 2016 Indian banknote demonetisation, seven new currency notes have been announced by the Reserve Bank of India-- ₹2,000, ₹500, ₹200, ₹100, ₹50, ₹20, and ₹10.[7][8]
According to the RBI data, there were 3,285.87 million pieces of ₹2000 notes in circulation at end-March 2017. A year after (on March 31, 2018), there was only a marginal increase in the number at 3,363.28 million pieces. Of the total currency in circulation amounting to ₹18,037 billion at end-March 2018, ₹2000 notes accounted for 37.3 percent, down from 50.2 percent at end-March 2017.[9] The share has come down to 22.6 per cent at end-March 2020.[10]
The ₹2,000 note was created as a quick fix, to have enough circulation of currency.[11] With lower denominations available in circulation, the Indian government and the RBI has rolled back ₹2,000 notes from circulation.[11]
Under the rationale that the ₹2000 note was being used for hoarding and tax evasion, RBI has stopped the printing of banknotes of ₹2000 denomination[12] and no new notes of this denomination were printed during the 2019-20 financial year.[13]
Withdrawal
Withdrawal of ₹2000 Denomination Banknotes – Status
date of close of business
Percentage of ₹2000 Denomination Banknotes returned to banking system
total value in public circulation
19 May 2023
-
Rs 3.56 lakh crore
31 August 2023
93%
Rs 0.24 lakh crore
30 September 2023
96%
Rs 0.14 lakh crore
31 October 2023
97%
Rs 10,000 crore
30 November 2023
97.26%
Rs 9,760 crore
29 December 2023
97.38%
Rs 9,330 crore
29 February 2024
97.62%
Rs 8,470 crore
29 March 2024
97.69%
Rs 8,202 crore
28 June 2024
97.87%
Rs 7,581 crore
31 July 2024
97.92%
Rs 7,409 crore
30 August 2024
97.96%
Rs 7,261 crore
30 September 2024
98%
Rs 7,117 crore
31 October 2024
98.04%
Rs 6,970 crore
31 December 2024
98.12%
Rs 6,691 crore
On 20 May 2023, the Reserve Bank of India announced its decision to withdraw the ₹2,000 notes from circulation. Despite this, the notes would remain legal tender and could be exchanged or deposited in bank accounts until 30 September 2023, after which the banknote was demonetised.[14][15]
In addition, banks were instructed not to issue 2,000-rupee notes and to increase their staff and counters to handle the expected surge in transactions. The government clarified that this measure is not a "demonetisation" effort. However, the announcement caused some concern among the public, with comparisons being made to the previous demonetisation initiative. While certain BJP lawmakers praised the move as a "second surgical strike on black money," opposition leaders argue that the decision to withdraw notes in 2016 was flawed and that this recent action is an acknowledgment of that mistake. Following the government's announcement, there were reports of individuals using 2,000-rupee notes to make payments at petrol stations and shops in an attempt to dispose of them.[16][17]
On 1 September 2023, Reserve Bank of India informed that 93% of Rs 2,000 notes, worth Rs 3.32 lakh crore have been returned to the banking system, and therefore Rs 2,000 notes in circulation stood at Rs 0.24 lakh crore, at the close of business on 31 August 2023.[18][19][20]
On 30 September 2023, Reserve Bank of India informed that 96% of Rs 2,000 notes, worth Rs 3.42 lakh crore have been returned to the banking system, and therefore Rs 2,000 notes in circulation stood at Rs 0.14 lakh crore.[21][22] Reserve Bank of India extended the deposit/exchange deadline to 7 October 2023, and thereafter can be exchanged by individuals at the 19 RBI Issue Offices only.
On 1 November 2023, Reserve Bank of India informed that 97% of Rs 2,000 notes have been returned to the banking system, however Rs 2,000 notes worth Rs 10,000 crore are still in circulation with public, at the close of business on 31 October 2023.[23][24][25][26]
On 1 December 2023, Reserve Bank of India informed that 97.26% of Rs 2,000 notes have been returned to the banking system, however Rs 2,000 notes worth Rs 9,760 crore are still in circulation with public, at the close of business on 30 November 2023.[27][28] RBI said that 2,000 bank notes continue to be legal tender.[29]
On 1 March 2024, Reserve Bank of India informed that 97.62% of Rs 2,000 notes have been returned to the banking system, however Rs 2,000 notes worth Rs 8,470 crore are still in circulation with public, at the close of business on 29 February 2024.[30][31] RBI said that 2,000 bank notes continue to be legal tender.[32]
On 1 April 2024, Reserve Bank of India informed that 97.69% of Rs 2,000 notes have been returned to the banking system, however Rs 2,000 notes worth Rs 8,202 crore are still in circulation with public, at the close of business on 29 March 2024.[33][34]
Design
The new ₹2000 banknote was a 66mm × 166mm Magenta coloured note, with the obverse side featuring a portrait of Mahatma Gandhi, the Ashoka Pillar Emblem, and the signature of Reserve Bank of IndiaGovernor. It has Braille print on it, to assist the visually challenged in identifying the currency. The reverse side features a motif of the Mangalyaan, representing India's first interplanetary space mission, and the logo and tag line for Swachh Bharat Abhiyan.[2]
Security features
Microscopic view of the ₹2000 Indian currency note showing micro printing of letters 'RBI'
The ₹2000 banknotes has multiple security features, listed below:[2]
See-through registration device with denominational numeral ₹2000
Latent image with denominational numeral ₹2000
Denominational numeral २००० rendered in Devnagari script
Micro letters 'RBI' and '2000' on the left side of the banknote
Windowed security thread with inscriptions 'भारत', RBI, and ₹2000 on banknotes, with a colour shift. The thread colour changes from green to blue when the note is tilted
Guarantee Clause, the Governor’s signature with the Promise Clause, and the RBI's emblem on the right side
Denominational numeral with Rupee Symbol, ₹2000 in colour changing ink (green to blue) on bottom right
Ashoka Pillar emblem on the right Mahatma Gandhi portrait and electrotype (2000) watermarks
Number panel with numerals growing from small to big on the top left side and bottom right side.
For the visually impaired Intaglio (raised printing) of Mahatma Gandhi portrait, Ashoka Pillar emblem, bleed lines and identity mark
Horizontal rectangle with ₹2000 in raised print on the right
Seven angular bleed lines on left and right side in raised print (obverse)
Year of printing of the note on the left (reverse)
Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in payment of a debt extinguishes the debt. There is no obligation on the creditor to accept the tendered payment, but the act of tendering the payment in legal tender discharges the debt.
The Reserve Bank of India is India's central bank and regulatory body responsible for regulation of the Indian banking system. Owned by the Ministry of Finance of the Government of the Republic of India, it is responsible for the control, issue and maintaining supply of the Indian rupee. It also manages the country's main payment systems and works to promote its economic development.
The Indian rupee is the official currency in the Republic of India. The rupee is subdivided into 100 paise. The issuance of the currency is controlled by the Reserve Bank of India. The Reserve Bank manages currency in India and derives its role in currency management based on the Reserve Bank of India Act, 1934.
The Sri Lankan Rupee is the currency of Sri Lanka. It is subdivided into 100 cents, but cents are rarely seen in circulation due to its low value. It is issued by the Central Bank of Sri Lanka. The abbreviation Re (singular) and Rs (plural) is generally used, the World Bank suggests SL Rs as a fully disambiguating abbreviation for distinction from other currencies named "rupee".
The Pakistani rupee is the official currency in the Islamic Republic of Pakistan. The issuance of the currency is controlled by the State Bank of Pakistan. It was officially adopted by the Government of Pakistan in 1949. Earlier the coins and notes were issued and controlled by the Reserve Bank of India until 1949, when it was handed over to the Government and State Bank of Pakistan, by the Government and Reserve Bank of India.
Coins of the Indian rupee (₹) were first minted in 1950. New coins have been produced annually since then and they make up a valuable aspect of the Indian currency system. Today, circulating coins exist in denominations of 1, 2, 5, 10, and 20 rupees. All of these are produced by four mints located across India, in Kolkata, Mumbai, Hyderabad, Noida.
The history of the rupee traces back to ancient times in the Indian subcontinent. The mention of rūpya by Pāṇini is seemingly the earliest reference in a text about coins. The term in Indian subcontinent was used for referring to a coin.
The Gandhi Series of banknotes are issued by the Reserve Bank of India (RBI) as the legal tender of Indian rupee. The series is so called because the obverse of the banknotes prominently display the portrait of Mahatma Gandhi. Since its introduction in 1996, this series replaced all Lion Capital Series banknotes issued before 1996. The Reserve Bank of India (RBI) introduced the series in 1996 with ₹10 and ₹500 banknotes.
The Indian 1000-rupee banknote is an obsolete denomination of the Indian rupee. It was first introduced by the Reserve Bank of India in 1938 under British rule and subsequently demonetized in 1946. Post-independence, the denomination was re-introduced in 1954. In January 1978, all high-denomination banknotes of ₹1000, ₹5000, and ₹10000 were demonetized in order to curb unaccounted cash money.
The Indian 500-rupee banknote is a denomination of the Indian rupee. In 1987, the ₹500 note was introduced, followed by the ₹1,000 note in the year. The current ₹500 banknote, in circulation since 10 November 2016, is a part of the Mahatma Gandhi New Series. The previous banknotes of the Mahatma Gandhi Series, in circulation between October 1997 and November 2016, were demonetised on November 8, 2016.
The Indian 100-rupee banknote is a denomination of the Indian rupee. It has been in continuous production since Reserve Bank of India took over the functions of the controller of currency in India in 1935. The present ₹100 banknote in circulation is a part of the Mahatma Gandhi New Series.
The Indian 50-rupee banknote is a denomination of the Indian rupee. The present ₹50 banknote in circulation is a part of the Mahatma Gandhi New Series of banknotes. However, ₹50 banknotes of the previous series will continue to be legal tender.
The Indian 20-rupee banknote is a common denomination of the Indian rupee. The current ₹20 banknote in circulation is a part of the Mahatma Gandhi New Series. The Reserve Bank introduced the ₹20 note in the Mahatma Gandhi New Series in 2019, making it the last denomination to be introduced in the series.
The Indian 10-rupee banknote is a common denomination of the Indian rupee. The ₹10 note was one of the first notes introduced by the Reserve Bank of India as a part of the Mahatma Gandhi Series in 1996. These notes are presently in circulation along with the Mahatma Gandhi New Series which were introduced in January 2018, this is used alongside the 10 rupee coin.
On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. It also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes. Prime Minister Narendra Modi said that this decision would curtail the shadow economy, increase cashless transactions and reduce the use of illicit and counterfeit cash to fund illegal activity and terrorism.
The Mahatma Gandhi New Series of banknotes are issued by the Reserve Bank of India (RBI) as the legal tender of the Indian rupee, intended to replace the Mahatma Gandhi Series of banknotes. Announced on 8 November 2016, it followed the demonetisation of ₹500 and ₹1000 banknotes of the original Mahatma Gandhi Series. Similar to the preceding series of banknotes, the obverse of the Mahatma Gandhi New Series banknotes also prominently displays the portrait of Mahatma Gandhi. The logo of Swachh Bharat Abhiyan is also printed on the back of the banknotes of this series.
The Indian 10-rupee coin is a denomination of the Indian rupee. The ₹10 coin is the second highest-denomination coin minted in India since its introduction in 2005. The present ₹10 coin in circulation is from the 2019 design. However, the previous ₹10 coins minted before 2019 are also legal tender in India. All ₹10 coins containing with and without the rupee currency sign are legal tender, as stated by the Reserve Bank of India. Along with the standard designs, there are 4 different designs for this denomination and this is used alongside the 10 rupee banknote.
The High Denomination Bank Notes (Demonetisation) Act, 1978 was an act of the Indian Parliament that demonetized the high-denomination banknotes of ₹1000, ₹5000, and ₹10000. It was first introduced as the High Denomination Bank Notes (Demonetisation) Ordinance, 1978, by the then President of India Neelam Sanjiva Reddy. The then Prime Minister of India, Morarji Desai of Janata Party, and Finance Minister Hirubhai M. Patel were considered key architects of the policy, while RBI Governor I. G. Patel was opposed to it.
The Indian 200-rupee note (₹200) is a denomination of the Indian rupee. After the 2016 Indian banknote demonetisation, the new currency notes were announced by the Reserve Bank of India: ₹2,000, ₹500, ₹200, ₹100, ₹50, ₹20 and ₹10.
The Indian 5-rupee note is the second smallest Indian note in circulation. The Reserve Bank of India introduced the 5 rupee banknote as part of the Mahatma Gandhi Series in 1996. The printing of notes in the denominations of ₹5, however, has been discontinued as these denominations have been coinised but still these notes are valid legal tender in India.
1 2 3 Killawala, Alpana (8 November 2016). "Issue of ₹ 2000 Banknotes"(PDF) (Press release). RESERVE BANK OF INDIA. Archived(PDF) from the original on 10 November 2016. Retrieved 14 November 2016.
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