State-owned Indian Bank received Rs 7,000 crore worth of Rs 2,000 notes until July 26, 2023, as stated by Shanti Lal Jain, MD & CEO of Indian Bank in an interview with Moneycontrol on July 28.
“We have received Rs 7,000 crore worth of Rs 2,000 notes till July 26, 2028, out of which Rs 560 crore is in exchange form and the rest Rs 6,440 crore is in deposit form,” said Jain.
He further added that they have provided the best services at their branches for the smooth exchange of notes.
The Reserve Bank of India (RBI) had announced the withdrawal of the Rs. 2,000 bills on May 19 as part of its clean note policy. To facilitate the exchange or deposit process, the RBI allowed all banks adequate time until September 30, 2023. It also advised banks to stop issuing the Rs 2,000 denomination banknotes immediately.
No deadline extension
During the current monsoon session of the parliament on July 24, the finance ministry stated that there is no proposal to extend the deadline for the exchange of Rs 2,000 notes beyond September 30.
In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary responded in the negative to a question about whether there is a proposal to extend the deadline for the exchange of Rs 2,000 notes in banks beyond September 30. "At present, this matter is not under consideration," the minister said.
Chaudhary also replied in the negative to another question about whether the government is planning to demonetise other high-denomination currency notes to eliminate black money.
Earlier, on July 3, the RBI stated that Rs 2.72 lakh crore worth of Rs 2,000 banknotes, which account for 76 percent of circulation, had returned to the banking system as of June 30. Consequently, the Rs 2,000 banknotes in circulation as of June 30 remained at Rs. 0.84 lakh crore.
According to the RBI, 87 percent of the returned notes have been deposited in bank accounts by the public, while the remaining 13 percent have been exchanged for other denominations.
Economy requirement
The minister further stated that the withdrawal was a currency management operation planned to avoid any inconvenience to the public or disruption in the economy.
The Rs 2,000 denomination banknotes were introduced on November 10, 2016, to meet the currency requirement of the economy after the demonetisation of all Rs. 500 and Rs. 1,000 banknotes in circulation at that time.
As of June 30, the value of the withdrawn Rs. 2,000 currency notes in circulation has continued to fall, with only Rs. 84,000 crore of them remaining outside the banking system, as informed by the finance ministry to the Parliament.
"According to RBI, as on 30.6.2023, the value of Rs 2000 denomination banknotes in circulation is Rs. 0.84 lakh crore, and the percentage of Rs. 2000 denomination in total banknotes in circulation is 2.51 percent," Minister of State for Finance Pankaj Chaudhary said in a written response to a question in the Lok Sabha on July 24.
The update from the government on the matter is the first official one after the Reserve Bank of India (RBI) had said on June 8 that around Rs. 1.8 lakh crore of these notes had returned to the banking system.
As of March 31, there were Rs. 3.62 lakh crore worth of Rs. 2,000 notes in circulation.
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