RBI stops printing Rs 2,000 denomination notes

RBI ANNUAL REPORT: During FY20, there was no indent for printing of Rs 2,000 currency notes and also no fresh supplies were made by- Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) and Security Printing and Minting Corporation of India Limited (SPMCIL), the report said.

BRBNMPL supplies a major portion of bank note requirement in the country.

The remaining requirements met through Security Printing and Minting Corporation of India Limited (SPMCIL), A public sector undertaking wholly owned by Government of India.

DECLINE IN RS.2000 NOTES

There were 33,632 lakh pieces of Rs 2,000 notes in circulation at end-March 2018.

This declined to 32,910 lakh pieces by March 2019. Further to 27,398 lakh pieces by the end of March 2020.

SHARE IN VOLUME & VALUE TERMS

The share of Rs 2,000 notes in the total volume of banknotes fell to 2.4% in 2019-20 against 3% in 2018-19 and 3.3% at end-March 2018. In terms of value, the share of Rs 2,000 notes have plunged to 22.6% in 2019-20, from 31.2% in 2018-19, and 37.3% at the end of March 2018.

OVERALL CIRCULATION

Overall, the value and volume of banknotes in circulation increased by 14.7% and 6.6%,

respectively, during 2019-20.In value terms, the share of Rs 500 and Rs 2,000 banknotes together accounted for 83.4% of the total value of banknotes. Sharp increase in the share of Rs 500 banknotes. RBI said that fake notes detected in the denomination of Rs 2,000 declined by 22.1% to 17,020 pieces in FY20 compared to 21,847 pieces in the previous year. But there was a sharp rise in the detection of fake notes of Rs 200 and Rs 500 denominations in 2019-20, despite the security features in them. In 2019-20, as many as 30,054 fake notes of new Rs 500 series were discovered in the banking system, as against 21,865 in 2018-19 — an increase of 37%. There was a 151% rise in the detection of fake Rs 200 notes. 31,969 fake Rs 200 notes in 2019-20, as against 12,728 in 2018-19.

Increase of 144.6%, 28.7% in counterfeit 

notes detected in the denominations of Rs 10, Rs 50, respectively.

This data only reflects detection of fake notes by banks and RBI, and Not those counterfeit notes seized by the police and other enforcement agencies.

FAKE CURRENCY STILL A PROBLEM

After the demonetisation decision, the government had introduced notes of Rs 2,000 and new series of Rs 500 notes, as well as Rs 200 notes. One of the reasons cited for the government’s momentous decision was ostensibly to check fake notes. However, data from the new report showed that counterfeiting of currency notes remains a problem for India.