Thursday, 10 Oct, 2024
By: Anshul Vipat
Image source: IANS
Rs 2,000 notes were introduced in the aftermath of demonetisation in 2016
Rs 2,000 notes were introduced in the aftermath of demonetisation in 2016 when the government withdrew all Rs 500 and Rs 1000 notes in circulation. At that time, more than 85% of the currency notes in circulation were eliminated by this move. This high denomination paper money was introduced with the backing of the Central Government, which claimed they would curb black money hoarding.
The value and volume of banknotes in circulation increased by 9.9 per cent and 5.0 percent, respectively, during 2021-22 as compared with 16.8 per cent and 7.2 per cent, respectively, during 2020-21. In value terms, the share of Rs 500 and Rs 2000 banknotes together accounted for 87.1 per cent of the total value of banknotes in circulation in 2022 as against 85.7 per cent in 2021. In volume terms, Rs 500 denomination constituted the highest share at 34.9 per cent, followed by Rs 10 denomination banknotes, which constituted 21.3 percent of the total banknotes in circulation in 2022.
The data also reveals that Indians has increased the use of coins. The total value of coins in circulation increased by 4.1 per cent in 2021-22, while the total volume increased by 1.3 per cent during the same period. Coins of Rs 1, Rs 2 and Rs 5 together constituted 83.5 per cent of the total volume of coins in circulation.
RBI said that fake notes detected in the denomination of Rs 2,000 increased from 8,798 in 2020-21 to 13,604 in 2021-22, while fake notes of Rs 100 reduced from 1,10,736 in 2020-21 to 92,237 in 2021-22. Overall, compared to the previous year, there was an increase of 16.4 per cent, 16.5 per cent, 11.7 per cent and 101.9 per cent in the counterfeit notes detected in the denominations of Rs 10, Rs 20, Rs 200, and Rs 500 (new design) respectively. The counterfeit notes detected in the denominations of Rs 50 and Rs 100 declined by 28.7 per cent and 16.7 per cent, respectively.
Presently, the Reserve Bank issues banknotes in denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2000.
