The share of Rs 2,000 banknotes in circulation fell to two percent at the end of FY21 from 2.4 percent in March 2020, showed the Reserve Bank of India’s (RBI) annual report for 2020-21. During the year, precautionary demand for cash surged in the economy with the onset of the Covid-19 pandemic, the RBI annual report said.
The Rs 2,000 banknote was introduced in 2016 soon after the government’s decision to demonetise old Rs 500 and Rs 1,000 notes. As at end-FY21, 245 crore pieces of the Rs 2,000 note were in circulation, down from 273.98 crore a year ago. In value terms, the Rs 2,000 note accounted for Rs 4.9 lakh crore of currency in circulation in March 2021, down from Rs 5.48 lakh crore in March 2020.
The share of Rs 500 notes in currency in circulation was the highest at 31.1 percent, up from 25.4 percent at end-March 2020 and 19.8 percent at the end of FY19. The total number of Rs 500 notes was 3,867.9 crore. In value terms, Rs 500 notes accounted for Rs 19.34 lakh crore of currency, up from Rs 14.72 lakh crore in end-FY20. Their share by value rose to 68.4% from 60.8% in the previous year. The share of Rs 200 notes also rose marginally to 4.7% from 4.6%.
The Rs 10 note had the second-highest share after the Rs 500 note, accounting for 23.6% of all notes in circulation, albeit down from 26.2% in the previous year.
The total volume of currency in circulation rose 7.2% to 12,436.71 crore pieces at the end of March 2021, while the value rose nearly 17% to Rs 28.27 lakh crore.The number of counterfeit notes detected in FY21 fell 30% from the previous year to 2.09 lakh. Of the total fake Indian currency notes detected in the banking sector, 3.9 percent were detected at the RBI and 96.1 percent by other banks, the annual report said.