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New Delhi: The number of Rs 2,000 notes in circulation in November this year has come down to 2233 crore notes or 1.75 per cent of the total notes in circulation (NIC) as compared to 336.3 crore notes in March 2018.
Pankaj Choudhary, Minister of State in the Ministry of Finance, in a written reply in the Rajya Sabha, said that the decision to print special denomination banknotes is taken by the government in consultation with the Reserve Bank to facilitate transactional demand of the public to maintain the desired denomination mix. is done.
“The NIC in terms of quantity and value accounts for 3.27 per cent and 37.26 per cent respectively as against 3,363 million notes (MPCs) of Rs 2,000 denomination in circulation as on March 31, 2018; 2,233 MPCs were in circulation as on November 26, 2021, constituting 1.75 per cent and 15.11 per cent NICs in terms of volume and value respectively,” he said.
Chowdhary further said that no new indent has been placed with the currency printing press for the note from 2018-19 onwards.
“The decrease in circulation of Rs 2,000 notes issued after demonetisation is because no fresh indent has been placed for printing of these notes since 2018-19.
Besides, notes also go out of circulation as they become soiled/mutilated,” he said.
On November 8, 2016, the government had decided to demonetise the then prevalent Rs 500 and Rs 1,000 notes to curb black money, among other objectives.
After demonetisation, a new series of Rs 2,000 notes and Rs 500 notes were introduced. Later, Rs 200 denomination banknotes were also introduced.
In another reply, the minister said the demand for the currency depends on a number of macro-economic factors, including economic growth and interest rate levels.
The precautionary demand generated by the public due to the uncertainties induced by the COVID-19 pandemic is also an important factor in the demand for currency during the financial year 2020-21.
“Currency in circulation (CIC) as a percentage of GDP has increased from 12 per cent during 2019-20 to 14.5 per cent during 2020-21 due to higher public demand for cash and contraction in GDP,” Chowdhury said. “
However, the year-on-year growth in CIC has sharply declined to 7.9 per cent in November 2021 from 22.2 per cent hit a year ago by the pandemic.
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