The Reserve Bank of India (RBI) revealed that 97.76% of the Rs 2000 denomination banknotes, which were withdrawn in 2016, have now returned to the banking system. This implies that only Rs 7,961 crore worth of the old notes are still in circulation. The RBI had decided to withdraw the high-value banknotes to tackle issues like black money and counterfeit currency. The demonetization exercise had caused significant disruption in the economy, but its immediate impact on curbing black money remains uncertain. The central bank’s latest data suggests that the majority of the old notes have been successfully replaced. It is worth noting that the scrapped Rs 1000 notes have already been fully replaced by the newer Rs 2000 and Rs 500 banknotes. The goal of demonetization was to promote digitization of payments and reduce the reliance on cash transactions. While the digital payment ecosystem has seen considerable growth in recent years, cash continues to dominate transactions in India. The phased withdrawal of high-value currency notes has certainly contributed to a shift towards a more digital economy, but there is still a long way to go. The RBI’s decision to withdraw the Rs 2000 notes came as a surprise to many, particularly given that it was introduced as part of the demonetization exercise just a few years ago. However, this move signifies the central bank’s ongoing efforts to ensure the stability and efficiency of the country’s monetary system. With the return of a large majority of the old notes, it is expected that the RBI will assess the need for further changes to the currency in circulation. It remains to be seen how this latest development will impact the overall economy, particularly in terms of liquidity and cash availability.