The RBI on May 27 said there was no fresh supply of Rs 2,000 notes in 2020-21 as in the previous year. However, it increased the supply of Rs 20 notes from 13,390 lakh pieces in 2019-20 to 38,250 lakh pieces in 2020-21. The Reserve Bank last supplied 467 lakh Rs. 2,000 notes in 2018-19.
According to the RBI Annual report, the overall supply of notes remained marginally lower by 0.3 per cent at 2,23,301 lakh pieces in FY21 against 2,23,875 lakh pieces the previous year.
The report added that Rs 500 denomination note and Rs. 2,000 denomination notes have the highest value of currency in circulation in the economy, making up 85.7 percent of all value that bank notes in circulation. The figure is higher than last year’s 83.4 percent.
The indent of banknotes was lower by 9.7 per cent in FY21 than that of a year ago. Last fiscal, the indent and supply of coins were lower by 11.8 per cent and 4.7 per cent, respectively, from their levels in the previous year.
The value and volume of banknotes in circulation increased by 16.8 per cent and 7.2 per cent, respectively, during 2020-21 as against a rise of 14.7 per cent and 6.6 per cent, respectively, seen during 2019-20.
The report also highlighted the importance of liquidity for economic recovery.