RBI Annual Report: Share Of Rs 2,000 And Rs 100 Currency Notes Drops In FY21
India’s central bank reported a decline in the number of Rs 2,000 and Rs 100 notes in circulation, while that of Rs 500 rose in the financial year ended March, at a time cash remained the most preferred mode of transaction in the country.
Volume of Rs 500 notes among total banknotes in circulation rose to 31.1% as on March 2021 compared with 25.4% a year earlier, and 19.8% in March 2019, according to Reserve Bank of India’s latest annual report. The Rs 500 denomination currently accounts for the highest share of total banknotes in circulation.
The total number of Rs 500 notes stood at 3.87 lakh.
By value, Rs 500 note accounted for 68.4% of total banknotes in circulation compared with 60.8% in March 2020.
In comparison, the share of Rs 2,000 notes has declined to 2% in FY21 from 3% in 2018-19, by volume. The total number of such notes stood at 24,510 as of March.
The Rs 2,000 notes were introduced as the highest denomination in India immediately after the government banned Rs 1,000 and old Rs 500 currency in November 2016. Since then, the share of Rs 2,000 notes has been falling.
By value, the Rs 2,000 note now accounts for 17.3% of the total currency notes in circulation compared with 22.6% a year ago and 31.2% in 2018-19.
Rs 100 note constituted 15.3% of the volume of total banknotes in circulation in March 2021 against 17.2% a year ago.
Total number of Rs 100 currency notes stood at 1.9 lakh as of March.
Rs 10 note, the second-highest in volume of total banknotes in circulation, accounted for 23.6% of the total notes in March 2021 compared with 26.2% a year ago.
Total value of banknotes in circulation rose 16.8% from a year ago to Rs 28.27 lakh crore as of March 2021, while by volume it rose 7.2% year-on-year.
Total number of counterfeit notes detected in FY21 dropped 30% year-on-year to 2.09 lakh.