The circulation of Rs 2000 denomination notes has continued to drop as new currency notes of the tender was not printed in the last few years. The percentage of the overall Rs 2,000 notes in circulation dropped to 1.6% in financial year 2021-22 (FY22) from 2% in the financial year 2021-21 (FY21).
The value of Rs 2000 notes in the overall circulation reduced to 13,8% from 17.3% a year ago, according to an RBI report.
In value terms, the share of Rs 500 and Rs 2000 banknotes together accounted for 87.1% of the total value of banknotes in circulation as on March 31, 2022, as against 85.7% as on March 31, 2021. In volume terms, Rs 500 denomination constituted the highest share at 34.9%, followed by Rs 10 denomination banknotes, which constituted 21.3% of the total banknotes in circulation as on March 31, 2022.
The Rs 2,000 notes were introduced in the aftermath of demonetisation in 2016 when the government withdrew all Rs 500 and Rs 1000 notes in circulation.
The value and volume of banknotes in circulation increased by 9.9% and 5%, respectively, during 2021-22 as compared with 16.8% and 7.2%, respectively, during 2020-21.
Presently, the Reserve Bank 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 comprise 50 paise and Re 1, Rs 2, Rs 5, Rs 10 and Rs 20 denominations.
