No Fresh Issuance of Rs 2,000 Notes Stated RBI

The Reserve Bank of India said on Thursday that there will be no new issuance of Rs 2,000 notes in 2020-21, as there was the previous year. The supply of Rs 20 notes, on the other hand, was boosted from 13,390 lakh pieces in 2019-20 to 38,250 lakh pieces in 2020-21. In 2018-19, the Reserve Bank issued 467 lakh Rs 2,000 notes. The overall supply of notes remained 0.3 percent lower in FY21, at 2, 23,301 lakh pieces, compared to 2,23,875 lakh pieces the previous year, according to the RBI Annual Report.

The indent of banknotes was lower by 9.7 per cent in FY21 than that of a year ago. Last fiscal, the indent and supply of coins were lower by 11.8 per cent and 4.7 per cent, respectively, from their levels in the previous year.

The value and volume of banknotes in circulation increased by 16.8 per cent and 7.2 per cent, respectively, during 2020-21 as against a rise of 14.7 per cent and 6.6 per cent, respectively, seen during 2019-20.

In value terms, the share of Rs 500 and Rs 2,000 banknotes together accounted for 85.7 per cent of the total value of banknotes in circulation as on March 31, 2021, as against 83.4 per cent as on March 31, 2020.

In volume terms, Rs 500 denomination constituted the highest share at 31.1 per cent, followed by Rs 10 denomination banknotes which constituted 23.6 per cent of the total banknotes in circulation as on March 31, 2021. The share of Rs 500 denomination banknotes in the total volume of banknotes showed a rising trend from 25.4 per cent as on March 31, 2020 to 31.1 per cent as on March 31, 2021.

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