The overall value of Rs 2,000 notes significantly fell to Rs 5.4 lakh crore in the fiscal year 2019-20, from Rs 6.5 lakh crore in the previous fiscal year 2018-19.
The circulation of the high denomination currency of Rs 2,000 has declined over the years. (Bloomberg image)
Rs 1.1 lakh crore worth of high denomination notes of Rs 2,000 vanished from the system in just one year. The overall value of Rs 2,000 notes significantly fell to Rs 5.4 lakh crore in the fiscal year 2019-20, from Rs 6.5 lakh crore in the previous fiscal year 2018-19, showed the latest data released by RBI today. On the other hand, the overall value of Rs 500 notes jumped to Rs 14.7 lakh crore in FY 2019-20, from Rs 10.7 lakh crore in FY 2018-19. In its annual report, RBI had said that no indent for the printing of Rs 2,000 currency notes was made during 2019-20 and no fresh supplies were made by BRBNMPL (Bharatiya Reserve Bank Note Mudran Private Limited) and SPMCIL (Security Printing and Minting Corporation of India Limited) as well.
The circulation of the high denomination currency of Rs 2,000 has declined over the years. From 336 crore pieces in 2018, the number of Rs 2,000 notes fell to 329 crores in 2019, and further to 273 crores in 2020, according to RBI’s annual report. By the end of March 2020, the share of these notes in value terms fell from 37.3 per cent at the end-March 2018 to 22.6 per cent at end-March 2020.
Meanwhile, new notes of Rs 2,000 and Rs 500 were introduced in November 2016 when Prime Minister Narendra Modi had announced demonetisation in an effort to curb black money, fake notes, among other reasons. However, the incidents of fraud are still at significant levels in the system.
In 2019, as many as 14,494 counterfeit notes of Rs 2,000, and 5,558 counterfeit notes of Rs 500 were held in Gujarat, according to the data provided by G Kishan Reddy, MoS, Ministry of Home Affairs, in a reply to a question in Lok Sabha. During 2016-2019, the state has witnessed fake Rs 2,000 notes worth Rs 11.4 crore and fake Rs 500 notes worth Rs 74.38 lakh. This is the highest amount of counterfeit notes held in any bordering states of the country.