Bombay:
The number of Rs 2,000 denomination notes has steadily declined over the years to 214 crore or 1.6 percent of the total notes in circulation at the end of March this year, according to RBI’s annual report.
The total number of banknotes in circulation of all denominations was 13,053 crore in March this year, compared to 12,437 crore compared to the same period a year ago.
At the end of March 2020, the number of denominations of Rs 2,000 in circulation was 274 crore, accounting for 2.4 percent of the total number of notes in circulation. The count fell to 245 crore or 2 percent of total banknotes in circulation as of March 2021 and fell further to 214 crore or 1.6 percent at the end of last fiscal year.
Also in value terms, the denominations of Rs 2,000 fell from 22.6 percent of the total value of the notes in circulation to 17.3 percent at the end of March 2021 and further to 13.8 percent at the end of March 2022.
According to the report, the number of Rs 500 denominations in circulation rose to 4,554.68 crore at the end of March this year, from 3,867.90 crore in the same period last year.
“In terms of volume, the Rs 500 denomination made up the highest share at 34.9 percent, followed by the Rs 10 denominations, which made up 21.3 percent of the total banknotes in circulation as of March 31, 2022,” the 2021 annual report -22 released on Friday said.
The denominations of Rs 500 stood at 31.1 percent at the end of March 2021 and 25.4 percent in March 2020. These notes increased in value from 60.8 percent to 73.3 percent from March 2020 to March 2022.
The total value of the banknotes in circulation of all denominations rose to Rs 31.05 lakh crore at the end of March this year from Rs 28.27 lakh crore at the end of March 2021.
“In terms of value, the combined share of Rs 500 and Rs 2000 accounted for 87.1 percent of the total value of the notes in circulation on March 31, 2022, up from 85.7 percent at the end of March 2021.” report said.
The value and volume of banknotes in circulation increased by 9.9 percent and 5 percent respectively in 2021-22, compared to 16.8 percent and 7.2 percent respectively in 2020-21,” the report said.
The Currency in Circulation (CiC) includes banknotes and coins. Currently, the Reserve Bank of India (RBI) issues banknotes in denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2000. Coins in circulation include 50 paise and Re 1, Rs 2, Rs 5, Rs 10 and Rs 20 denominations.