According to the Reserve Bank of India’s annual report, the value and volume of banknotes in circulation experienced a moderate increase during the fiscal year 2022-23 compared to the previous year. The value of banknotes increased by 7.8 percent, while the volume increased by 4.4 percent. In comparison, the previous year saw a growth of 9.9 percent in value and 5 percent in volume.
As of March 31, 2023, the combined value of Rs 500 and Rs 2,000 banknotes accounted for 87.9 percent of the total value of banknotes in circulation, a slight increase from the previous year’s 87.1 percent. The RBI has announced the withdrawal of Rs 2,000 notes, and individuals holding these notes have until September 30 to exchange or deposit them.
In terms of volume, the Rs 500 denomination constituted the largest share at 37.9 percent, followed by Rs 10 denomination banknotes at 19.2 percent of the total banknotes in circulation as of March 31, 2023.
The report revealed that there were 5,16,338 lakh pieces of Rs 500 denomination notes totaling Rs 25,81,690 crore at the end of March 2023, compared to 4,55,468 lakh pieces in the previous year. Additionally, there were 4,55,468 lakh pieces of Rs 2,000 notes amounting to Rs 3,62,220 crore at the end of March 2023.
Both in terms of volume and value, the circulation of Rs 2,000 notes declined compared to the previous year. The share of Rs 2,000 notes in total currency circulation decreased to 1.3 percent in volume and 10.8 percent in value by the end of March 2023.
Currently, the banknotes in circulation include denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500, and Rs 2,000. The circulation of coins includes denominations of 50 paise, Rs 1, Rs 2, Rs 5, Rs 10, and Rs 20.
In addition, the RBI launched the e-Rupee on a live-pilot basis during the fiscal year 2022-23. As of March 31, 2023, the value of e-Rupee-Wholesale and e-Rupee-Retail in circulation stood at Rs 10.69 crore and Rs 5.70 crore, respectively.
The report stated that the indent and supply of banknotes for the fiscal year 2022-23 were slightly higher by 1.6 percent compared to the previous year. Notably, there was no indent for printing Rs 2,000 notes during this period.
Regarding security measures, the report mentioned that the total expenditure on security printing during the fiscal year 2022-23 was Rs 4,682.80 crore, a decrease from Rs 4,984.80 crore in the previous year. The RBI disposed of 4,824 lakh pieces of soiled Rs 2,000 notes in the last fiscal year, an increase from 3,847 pieces in the preceding year.
Regarding counterfeit notes, there was an increase of 8.4 percent and 14.4 percent in counterfeit notes detected in the denominations of Rs 20 and Rs 500 (new design), respectively, compared to the previous year. However, there was a decline in counterfeit notes
