Rs 2,000, Rs 500 notes in circulation accounted 87.9% as on March 31 in value terms: RBI Annual Report

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The share of Rs 2,000 and Rs 500 banknotes in circulation accounted for 87.9 perccent in value term of the total circulation as on March 31, 2023, according to the Reserve Bank of India’s (RBI) annual report 2022-23.

Further, the report said in volume terms, Rs 500 denomination constituted the highest share at 37.9 per cent, followed by Rs 10 denomination banknotes, which constituted 19.2 per cent of the total banknotes in circulation as on March 31, 2023.

In the last annual report of the RBI, the circulation of Rs 2,000 banknotes showed the total value of Rs 3.62 lakh crore, constituting only 10.8 percent of notes in circulation on March 31, 2022.

On the coins front, the total value of coins in circulation increased by 8.1 per cent in 2022-23, while the total volume increased by 2.6 per cent.

As on March 31, 2023, coins of Rs 1, Rs 2, and Rs 5 together constituted 83.1 per cent of the total volume of coins in circulation, while in value terms, these denominations accounted for 72.3 per cent.

The value of e-rupee Wholesale (e`-W) and e-rupee Retail in circulation stood at Rs 10.69 crore and Rs 5.70 crore, respectively, as on March 31, 2023.

Clean note policy

The RBI on May 19 said it plans to withdraw Rs 2,000 notes from circulation based on a review.

This was in pursuance of the “Clean Note Policy”, and it advised banks to stop issuing these notes with immediate effect.

Members of the public were asked to deposit Rs 2,000 banknotes into their bank accounts and/or exchange them for banknotes of other denominations at any branch. Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions.

The central bank asked banks to provide a deposit and/or exchange facility of Rs 2,000 banknotes until September 30, to complete the exercise in a time-bound manner and to provide adequate time to the members of the public.

“The facility for exchange of RS 2,000 banknotes up to the limit of Rs 20,000/- at a time shall also be provided at the 19 Regional Offices (ROs) of RBI having Issue Departments from May 23, 2023,” RBI said in a release.