Banknotes value increased in circulation by almost 8% in 2022–2023

The value of banknotes in circulation increased by 7.8% during the fiscal year 2022–2023, despite numerous efforts to promote digital payments through the Unified Payments Interface (UPI).

According to RBI, the amount and value of banknotes in circulation rose by 4.4% and 7.8% respectively in FY 2022-23. However, in FY 2021-22, the amount and value of banknotes in circulation increased by respectively, in FY 2021–22. The total value of banknotes circulating was 28.26 lakh crore in 2021, Rs 31.09 lakh crore in 2022 and 33.48 lakh crore in 2023, a total increase by 18.4%.

As of March 31, 2023, there were 87.9% more Rs. 500 and 2,000 notes in circulation than there were on March 31, 2022.

The RBI has announced the withdrawal of Rs 2,000 notes, giving holders of the highest denomination currency until September 30 to exchange or deposit them.

There was 5,16,338 lakh in the quantity of Rs 500 denomination notes totalling Rs 25,81,690 crore at end-March 2023. The number of Rs 500 notes at end-March 2022 were equal to 4,55,468 lakh in number. The report also stated that there were 4,55,468 lakh number of Rs 2,000 notes amounting to Rs 3,62,220 crore at end-March.

Also, the notes with a denomination of Rs 10 note are 19.2% of the total amount of banknotes in circulation as of March 31, 2023, while banknotes with a denomination of Rs 500 are the largest portion of 37.9% in terms of volume.

The Rupee Notes circulating in the market are in denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2,000. Whereas the coins are in denominations of 50 paise, Rs 1, Rs 2, Rs 5, Rs 10 and Rs 20.

According to the Annual Report 2022–23 of RBI, coins in the denominations of 1, 2, and 5 made up together 83.1% of the total volume of coins in circulation while accounting for 72.3% in value terms as of March 31, 2023.

The RBI also launched the retail and wholesale e-rupee versions on a live-pilot basis throughout the year.

The annual report states that as of March 31, 2023, the value of the wholesale and retail e-rupees in circulation was 10.69 crore and 5.70 crore, respectively.

The RBI also conceptualised a pilot project for Quick Response (QR) code-based coin vending machines that use the UPI to increase coin accessibility for the general public during the previous fiscal year.

“During 2022-23, out of the total Fake Indian Currency Notes (FICNs) detected in the banking sector, 4.6 per cent were detected at the Reserve Bank and 95.4 per cent at other banks,” the report said. DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in the stock market is subject to unpredictable market-related risks. The author has no plans to invest in this offer and also the author does not recommend investing in any offer published on this website.