**Summary:**
In response to Lok Sabha Unstarred Question No. 4124, the Ministry of Finance addresses the withdrawal of Rs. 2000 currency notes. The Reserve Bank of India (RBI) continuously assesses banknote requirements and advises the government on denomination mixes, including introductions and withdrawals. The Rs. 2000 note, introduced in November 2016 to address currency needs following the demonetization of Rs. 500 and Rs. 1000 notes, was withdrawn on May 19, 2023, aligning with the RBI's Clean Note Policy, as other denominations became sufficiently available. Approximately 89% of the Rs. 2000 notes were issued before March 2017 and were nearing the end of their estimated 4-5 year lifespan. As of July 31, 2025, Rs. 6,017 crore of Rs. 2000 notes remained unreturned to the RBI, representing 1.69% of the Rs. 3.56 lakh crore in circulation as of May 19, 2023. Prior to the withdrawal, the government ensured adequate cash reserves were available at banks nationwide to facilitate exchange and withdrawal processes, with ongoing cash supply augmentation to banks across the country. The response was provided by Shri Pankaj Chaudhary, Minister of State in the Ministry for Finance, on August 18, 2025.
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for economic and financial matters.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India.
Lok Sabha: The lower house of the Parliament of India.
Bhartruhari Mahtab: Member of Parliament who posed the question regarding the withdrawal of Rs. 2000 currency notes.
Pankaj Chaudhary: Minister of State in the Ministry for Finance who provided the answer to the question.
Reserve Bank of India: The central bank of India, responsible for monetary policy and currency management.
Rs. 2000 Currency Notes: Banknotes of 2000 denomination, the withdrawal of which is the subject of the parliamentary question.
Clean Note Policy: A policy of the Reserve Bank of India to provide good quality currency notes to the public.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 4124
TO BE ANSWERED ON MONDAY, 18TH AUGUST 2025 / SRAVANA 27, 1947 (SAKA)
Withdrawal of Rs. 2000 Currency Notes
4124: Shri Bhartruhari Mahtab:
Will the Minister of Finance be pleased to state:
(a) whether the Government has assessed the impact of the withdrawal of 2000 denomination
currency notes on the overall liquidity and cash-dependent sectors of the economy;
(b) if so, the main findings of such assessment particularly with regard to rural and informal
sectors;
(c) the quantum and percentage of Rs. 2000 notes yet to be returned to the banking system; and
(d) the steps taken by the Government to ensure the stability of currency circulation and
liquidity post-withdrawal?
ANSWER
MINISTER OF STATE IN THE MINISTRY FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b): The Reserve Bank of India (RBI), as part of a continuous process, assesses the
requirement of different denominations of banknotes and makes recommendation to the
Government on the required denomination mix to be printed as well as the need for
introduction/withdrawal of any particular denomination. The ₹2000 denomination banknote
was introduced in November, 2016 primarily to meet the currency requirement of the economy
in an expeditious manner after the withdrawal of legal tender status of all ₹500 and ₹1000
banknotes in circulation at that time. The objective of introducing ₹2000 banknotes was met
once banknotes in other denominations became available in adequate quantities. About 89% of
₹2000 denomination notes were issued prior to March 2017 and are close to the end of their
useful life which spans from 4-5 years. Further, the stock of banknotes in other denominations
continues to be adequate to meet the currency requirement of the public. In view of the above,
and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it was decided to
withdraw the ₹2000 denomination banknotes from circulation on May 19, 2023.
(c): As per RBI, the total value of ₹ 2000 banknotes in circulation, which was ₹3.56 lakh
crore at the close of business on May19, 2023, has declined to ₹ 6,017 crore as on July 31,
2025. Thus, only 1.69% of the ₹2000 banknotes in circulation as on May 19, 2023 were yet to
be returned to RBI from circulation as on July 31, 2025.
(d): Before undertaking the exercise of withdrawal of ₹2000 banknotes, it was ensured that
sufficient buffer stock of cash was available with banks across the country to meet the
exchange/withdrawal requirements. The same was augmented through regular supply of cash
to various banks located across the country.
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