RBI says Rs 500, Rs 2,000 banknotes in circulation together accounted 87.9% as on Mar 31 in value terms

In value terms, the share of Rs 500 and Rs 2,000 banknotes together accounted for 87.9 per cent of the total value of banknotes in circulation as on March 31, 2023, as compared to 87.1 per cent as on March 31, 2022, as per the Reserve Bank of India's (RBI) annual report 2022-23.

Furthermore, the report added that 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.

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It also revealed that 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.

Meanwhile, the report pointed that around 91,110 pieces of fake Rs 500 notes were detected in FY23. This was a 14 per cent rise when compared to FY22 when 79,669 pieces of fake Rs 500 notes were detected.

During 2022-23, out of the total Fake Indian Currency Notes (FICNs) detected in the banking sector, 4.6 per cent were detected at the Reserve Bank and 95.4 per cent at other banks.

The central bank reported 78,699 fake Rs 100 notes in 2022-23, and 27,258 fake Rs 200 notes. It registered 9,806 fake Rs 2,000 notes in FY23.

To be noted, the RBI on May 19 said it has been decided to withdraw Rs 2,000 bank notes from circulation. However, RBI said bank notes of Rs 2,000 denomination will continue to be legal tender. RBI said it has asked banks to stop issuing Rs 2,000 notes with immediate effect.

According to the report, the counterfeit notes detected in denomination of Rs 2,000 declined by 27.9 per cent in 2022-23 when compared to the last year.  

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