₹500 notes comprised more than 50% in value terms as at end March 2019: RBI

The ₹2,000 currency notes introduced during the demonetisation exercise of 2016 have dropped in circulation in the last one year ended in March 2019.

According to data in the Reserve Bank of India’s annual report, there were 3,363 million pieces of such notes in circulation as at end March 2018, which was 3.3% of the total currency in circulation, in terms of volume. In value terms, the ₹2,000 notes’ share in total currency circulation was 37.3%.

The number of pieces dropped to 3,291 million in the year ended March 2019, which was 3% in terms of volume and 31.2% in value of total circulation. At the same time, the number of ₹500 notes significantly increased to 21,518 million pieces from 15,469 million pieces during the period under review.

The ₹500 notes, as at end March 2019, was 19.8% of the total circulation in volume (as compared to 15.1%) and 51% in terms of value (as compared to 42.9% in end March 2018).

So, in value terms, the ₹500 notes are more than half of the currency in circulation.

“In value terms, the share of ₹500 and ₹2,000 banknotes, which had together accounted for 80.2% of the total value of banknotes in circulation at end-March 2018, increased to 82.2% at end-March 2019.

There was a sharp increase in the value of ₹500 banknotes in circulation — from 42.9% to 51.0% over the year,” the report said.