Despite the Reserve Bank of India's (RBI) withdrawal initiative, nearly 2% of the ₹2000 banknotes that were in circulation as of May 2023 remain unreturned, according to the central bank's latest update.

As of October 31, 2024, approximately ₹6,970 crore worth of ₹2000 notes are still outside the banking system, a sharp drop from the ₹3.56 lakh crore initially in circulation when the withdrawal was announced on May 19, 2023.

While the ₹2000 banknote continues to hold legal tender status, the RBI has limited avenues for its exchange. Initially, the notes could be exchanged at any bank branch, but after October 7, 2023, this facility was restricted to the RBI's 19 Issue Offices. Individuals and entities may still deposit these notes directly into their bank accounts through the RBI or even send them via India Post to an RBI Issue Office.

The introduction of the ₹2000 note in 2016 aimed to quickly replenish currency after the demonetization of ₹500 and ₹1000 notes. However, the denomination has since seen limited transactional use, leading to a halt in printing by 2018-19. Most of the remaining notes are nearing the end of their 4-5 year lifespan, and the RBI has deemed the current stock of other denominations sufficient to meet public demand.

The ongoing return process aligns with the RBI's 'Clean Note Policy,' which seeks to ensure that only high-quality banknotes are in circulation. The RBI has continued to monitor the situation, periodically updating the public on the status of the ₹2000 banknote withdrawal, with the latest report indicating that a small portion of the currency remains outside the banking system.