Key Points:
- Rs 5,669 crore worth of Rs 2000 notes still outstanding as of December 31, 2025
- 98.41% of the demonetized notes have been returned since May 2023
- Only Rs 148 crore worth of notes returned in the last two months of 2025
- Notes can be exchanged at 19 RBI offices across India or via India Post
- Rs 2000 notes were introduced in November 2016 during demonetization
- Withdrawn in May 2023 under the Clean Note Policy
The Reserve Bank of India has not yet achieved a 100% return of the Rs 2000 pink notes that were withdrawn from circulation in 2023. According to figures released up to the end of 2025, the RBI has stated that over Rs 5,669 crore worth of these pink notes are still outstanding. This means that a significant amount of these demonetised high-denomination notes are still in the possession of the public. Despite the availability of return facilities, the pace of their return has slowed considerably, raising questions about the effectiveness of the withdrawal policy.
The RBI has issued an important update regarding the Rs 2000 notes, stating that the complete return of these pink notes, which were withdrawn from circulation on May 19, 2023, has not yet been achieved. At that time, Rs 3.56 lakh crore worth of these notes were in circulation, and by December 31, 2025, a total of 98.41% of the notes had been returned. The remaining Rs 5,669 crore worth of Rs 2000 notes are still with the public, representing nearly 1.6% of the total value that was in circulation when the withdrawal was announced.
Return Rate Analysis and Recent Slowdown
After the withdrawal from circulation, the RBI provided facilities for people to deposit these notes, and the return rate was quite fast in the initial stages. However, it has now slowed down considerably. Looking at the figures for the past two months, the amount of these notes in circulation was Rs 5,817 crore on October 31, and Rs 5,669 crore worth of these notes are still held by the public. This means that only Rs 148 crore worth of notes were returned in these two months, indicating a dramatic slowdown in the return process. It’s worth noting that the RBI had clarified that these withdrawn Rs 2000 notes would remain legal tender until their complete return, though they are no longer being printed or distributed.
Banking experts suggest several reasons for the slowdown. Many people may have forgotten about old notes stored in safes or lockers, while others might be unaware that exchange facilities still exist at RBI offices. Some notes may have been damaged or destroyed over time, and a small fraction could be held by individuals who are unable to travel to the designated exchange locations due to age, health, or financial constraints. The RBI has not disclosed any plans to extend exchange facilities beyond the current arrangement or to impose penalties on those holding the notes.
Historical Context and Withdrawal Rationale
The central bank introduced these high-denomination currency notes in November 2016, when the demonetization of Rs 500 and Rs 1000 notes was announced in the country. The Rs 2000 notes were initially intended to quickly replenish the currency supply that was sucked out of the economy during the sudden demonetization move. After mitigating the impact of demonetization and ensuring sufficient availability of notes of other denominations in the market, the central bank announced on May 19, 2023, that it would withdraw these notes from circulation under the Clean Note Policy.
The Clean Note Policy aims to remove soiled, mutilated, and outdated currency from the system to maintain the quality and integrity of banknotes in circulation. The RBI had observed that most Rs 2000 notes had reached the end of their lifecycle and were not commonly used for transactions. Additionally, the high denomination had raised concerns about its potential use in hoarding, money laundering, and other illicit activities, though the central bank did not explicitly cite these as reasons for the withdrawal.
Exchange Facilities and Procedures
After the withdrawal of the 2000 rupee notes from circulation, the Reserve Bank of India (RBI) initially allowed people to exchange their notes at all bank branches until October 7, 2023. Following a decrease in the number of notes in circulation, the central bank limited the exchange process to 19 RBI offices instead of all banks. These notes can still be exchanged at these offices, which are equipped to handle the verification and exchange process.
These offices include the Reserve Bank offices in Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, and Thiruvananthapuram. Furthermore, for the convenience of the public, the RBI has also provided the facility to send 2000 rupee notes through India Post via any post office. This postal exchange service allows people to mail their notes to the nearest RBI office after following specific packaging and declaration procedures outlined on the RBI website.
Economic Implications and Next Steps
The continued presence of Rs 5,669 crore in demonetised currency represents a small fraction of India’s total currency in circulation, which exceeds Rs 30 lakh crore. However, economists note that this amount, if returned, would add to the central bank’s reserves and could be used for dividend payments to the government or other monetary policy operations. The RBI has not set a deadline for the final exchange of these notes, creating uncertainty about how long the facilities will remain available.
Financial analysts are watching whether the RBI will launch a public awareness campaign to encourage the return of remaining notes or eventually write off the outstanding amount as per standard accounting practices for unreturned currency. For now, the central bank maintains that the exchange facilities will continue to operate indefinitely, though no new announcements have been made to simplify the process or expand access beyond the current 19 locations.
