Currency in circulation rose in value, volume during 2022-23: RBI

Rs 2,000 notes declined to 1.3 per cent of total currency in circulation at end-March 2023 compared to 1.6 per cent in the year-ago period

The value and volume of banknotes in circulation increased by 7.8 per cent and 4.4 per cent, respectively, during 2022-23 as compared with 9.9 per cent and 5 per cent, respectively, in 2021-22, revealed the RBI annual report released on Tuesday.

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 a year ago.

The Reserve Bank has announced withdrawal of Rs 2,000 notes, and holders of the highest-value currency have been given time till September 30 to exchange or deposit them.

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"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," said the report.

There were 5,16,338 lakh pieces of Rs 500 denomination notes totalling Rs 25,81,690 crore at end-March 2023. The number of Rs 500 notes at end-March 2022 were 4,55,468 lakh.

The report also said there were 4,55,468 lakh pieces of Rs 2,000 notes amounting to Rs 3,62,220 crore at end-March.

In volume terms, the Rs 2,000 notes in circulation declined to 1.3 per cent of total currency in circulation at end-March 2023 compared to 1.6 per cent in the year-ago period. In value terms, it too declined to 10.8 per cent from 13.8 per cent at end-March 2022.

Presently, the banknotes in circulation comprise those of denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2,000. Coins in circulation comprise those of 50 paise and Rs 1, Rs 2, Rs 5, Rs 10 and Rs 20 denominations.

The RBI also launched e-Rupee during 2022-23 on a live-pilot basis.

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

The report also said both indent and supply of banknotes for 2022-23 were marginally higher by 1.6 per cent than that of a year ago.

Like the previous years, there was no indent for printing of Rs 2,000 notes.

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The report said that indent and supply of banknotes by BRBNMPL and SPMCIL stood at 2,26,000 lakh and 2,26,002 lakh pieces, respectively.

The total expenditure incurred on security printing during 2022-23 was Rs 4,682.80 crore as against Rs 4,984.80 crore in the previous year.

The RBI also disposed of 4,824 lakh pieces of soiled Rs 2,000 notes in the last fiscal, up from 3,847 lakh pieces in the preceding year.

The report further said that compared to 2021-22, there was an increase of 8.4 per cent and 14.4 per cent in the counterfeit notes detected in the denominations of Rs 20 and Rs 500 (new design), respectively.

The counterfeit notes detected in the denominations of Rs 10, Rs 100 and Rs 2,000 declined by 11.6 per cent, 14.7 per cent and 27.9 per cent, respectively.

"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 report said.