Number of ₹2000 currency notes in circulation continue to decline

The number of banknotes of ₹2000 denomination has steadily declined over the years to touch 214 crore or 1.6% of the total currency notes in circulation at the end of March this year, according to RBI annual report.

The total number of currency notes of all denominations in circulation stood at 13,053 crore as of March this year, up from 12,437 crore from the year-ago period.

At the end of March 2020, the number of ₹2000 denomination notes in circulation stood at 274 crore, accounting for 2.4% of the total number of currency notes in circulation. The count declined to 245 crore or 2% of the total bank notes in circulation as of March 2021 and further fell to 214 crore or 1.6% at the end of last fiscal year.

In value terms also, the ₹2000 denomination notes dipped from 22.6% of the total value of currency notes in circulation to 17.3% at the end of March 2021 and further to 13.8% at the end of March 2022.

According to the report, the number of ₹500 denomination notes in circulation rose to 4,554.68 crore at the end of March this year as against 3,867.90 crore in the year-ago period.

“In volume terms, Rs 500 denomination constituted the highest share at 34.9 per cent, followed by Rs 10 denomination bank notes, which constituted 21.3 per cent of the total bank notes in circulation as on March 31, 2022,” the annual report for 2021-22 released on Friday said.

The ₹500 denomination notes accounted for 31.1% share at the end of March 2021 and 25.4% as of March 2020. In value terms, these notes rose from 60.8% to 73.3% from March 2020 to March 2022.

The total value of currency notes in circulation of all denominations rose to ₹31.05 lakh crore at the end of March this year from ₹28.27 lakh crore at the end of March 2021.

“In value terms, the share of Rs 500 and Rs 2000 notes together accounted for 87.1 per cent of the total value of bank notes in circulation as on March 31, 2022, as against 85.7 per cent at end-March, 2021,” the report said.

The value and volume of bank notes in circulation increased by 9.9% and 5%, respectively, during 2021-22 as compared to 16.8% and 7.2%, respectively, during 2020-21,” the report said.

The Currency in Circulation (CiC) includes banknotes and coins. Presently, Reserve Bank of India (RBI) issues banknotes in denominations of ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500 and ₹2000. Coins in circulation comprise 50 paise and ₹1, ₹2, ₹5, ₹10, and ₹20 denominations.