₹2000 Notes: RBI’s Latest Return Status and RBI Income
Why in the news
RBI gave a new status update in September 2025: nearly every ₹2000 note had returned by 31 August 2025.
Key facts
- Withdrawal announced: 19 May 2023.
- Introduced: November 2016 to restore currency supply fast.
- Section 24: RBI decides denominations.
- Section 26(2): Centre may, on RBI’s recommendation, declare a note no longer legal tender.
Impact
- Public: little disruption; deposit and exchange were widely allowed.
- Economy: better currency management, less hoarding.
- Banks: temporary workload, now moved to RBI Issue Offices.
RBI’s sources of income
| Source | Nature |
|---|---|
| Seigniorage | Gain from issuing notes above printing cost (about ₹5 to print a ₹500 note) |
| Foreign assets | Interest on forex reserves in safe securities |
| Domestic G-Secs | Interest on government bonds and T-bills held |
| Lending to banks | Repo and MSF interest |
| Debt management | Commission for handling government borrowing |
| Banking services | Fees on RTGS, NEFT, cheque clearing |
| Gold and others | Returns on gold holdings and other instruments |
Exam angle
- Sections: 24 and 26(2) of the RBI Act, 1934.
- Seigniorage tops the income list.