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.
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.[2][3][4] 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.[5] 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.[6][7]
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.[8] The share has come down to 22.6 per cent at end-March 2020.[9]
The ₹2,000 note was created as a quick fix, to have enough circulation of currency.[10] With lower denominations available in circulation, the Indian government and the RBI has rolled back ₹2,000 notes from circulation.[10]
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[11] and no new notes of this denomination were printed during the 2019-20 financial year.[12]
Withdrawal
On 20 May 2023, the Reserve Bank of India announced its decision to withdraw the ₹2,000 notes from circulation. Despite this, the notes will remain legal tender and can be exchanged or deposited in bank accounts until 30 September 2023, after which the banknote was demonetised.[13][14]
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.[15][16]
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.[17][18][19]
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.[20][21] 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.[22][23][24][25]
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.[26][27] RBI said that 2,000 bank notes continue to be legal tender.[28]
Design
The new ₹2000 banknote was a 66 mm × 166 mm 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.[1]
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:[1]
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)
^ abcKillawala, 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.
