Rs 2,000 denomination now 15.1% of whole worth of notes in circulation

The variety of Rs 2,000 foreign money notes in circulation fell by a 3rd in absolute numbers and by greater than half in worth phrases during the last 44 months as recent indent has not been positioned for printing since 2018-19 and likewise notes went out of circulation on account of soilage.
The share of Rs 2,000 notes in circulation has fallen even because the foreign money in circulation has risen over 62 per cent during the last 5 years from Rs 17.74 lakh crore on November 4, 2016 to Rs 28.78 lakh crore on November 19, 2021.
In a written reply within the Rajya Sabha on Tuesday, Minister of State in Finance Ministry Pankaj Chaudhary stated that as in opposition to 3,363 million items (mpcs) of Rs 2,000 denomination banknotes in circulation on March 31, 2018 — constituting 3.27 per cent and 37.26 per cent of notes in circulation (NIC) by way of quantity and worth, respectively — 2,233 mpcs had been in circulation on November 26, 2021 — constituting 1.75 per cent and 15.11 per cent of NIC by way of quantity and worth, respectively. Pointing out the explanation, he stated, “The decrease in circulation of Rs 2,000 note issued after demonetisation is because no fresh indent has been placed for printing of these notes from 2018-19 onwards. Further, notes also go out of circulation as they get soiled/mutilated.”
He added that printing of banknotes of a selected denomination is set by the federal government in session with the Reserve Bank of India to keep up desired denomination combine for facilitating transactional demand of public.
On November 8, 2016, the federal government determined to demonetise the then prevailing Rs 500 and Rs 1,000 banknotes to curb black cash, amongst different aims.
Following demonetisation, a Rs 2,000 observe and a brand new collection of Rs 500 observe had been launched. Later, a banknote of denomination of Rs 200 too was launched.

In one other reply, Choudhary informed Parliament that demand for foreign money relies upon upon a number of macro-economic elements, together with financial development and degree of rate of interest. Precautionary demand generated by public throughout FY21 on account of Covid-19-induced uncertainties can also be an essential think about foreign money demand.
“Combination of greater public demand for cash and a contraction in GDP has led to an increase in Currency in Circulation (CiC) as percentage of GDP from 12 per cent during 2019-20 to 14.5 per cent during 2020-21,” Choudhary stated. However, year-on-year development in CiC has decelerated sharply to 7.9 per cent as of this November from pandemic influenced surge to 22.2 per cent a yr in the past, he stated.