RBI clarifies validity of Rs 2,000 bank notes, provides steps for exchange process

Amid confusion on the validity of Rs 2,000 notes, the Reserve Bank of India (RBI) issued a confirmation Thursday, stating that it is not illegal, but yes, it has been withdrawn.

The central bank's statement read, "The total value of Rs 2000 banknotes in circulation, which was Rs 3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of Rs 2000 banknotes was announced, has declined to Rs 5,669 crore at the close of business on December 31, 2025."

It explained that 98 per cent of these bank notes have been returned to the bank since May 19, 2023, when its circulation was stopped. A small part of these notes still remain in possession of individuals, or continue to be in circulation, and the statement read its validity under the legal tender.

Though it continues to be legal, the bank urges citizens to exchange or return the note to them, and they have made the process easier by outlining steps for the exchanges. They are listed below:

Step 1: Learn the bank facility's closure

As the exchange or deposit of all Rs 2,000 notes at all branches ended on October 7, 2023, note branches that may not have the facility.

Step 2: RBI Issue Offices for deposit

Entities can deposit the bank notes into their accounts, from October 9, 2023, at any of the 19 Issue Offices of RBI.

Step 3: Exchange bank notes at RBI Issue Offices

A direct exchange facility is provided by the central bank, at the Issue Offices, for anyone who still held possession of the Rs 2,000 notes.

Step 4: Send notes via India Post

Public could send the bank notes via India Post from any post office in the country to an RBI Issue Office to credit into bank accounts.

Step 5: Learn the locations of the RBI Issue Offices

The RBI Issue Offices are located in Ahmedabad, Bangalore, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna and Thiruvananthapuram.