New Delhi: Reserve Bank of India (RBI) on Friday released its annual report. The report revealed that the volume of Rs. 2000 notes in circulation has decreased year on year since 2020.
In 2020, the share of Rs. 2000 notes in the total volume of banknotes in circulation was 2.4 percent. It has decreased to 2.0 percent in 2021. The share of the notes was further reduced to 1.6 percent of the total volume of banknotes in 2022.
Not just the volume but also the share of Rs. 2000 notes in the total value of banknotes in circulation was reduced from 22.6 percent in 2020 to 13.8 percent in 2022.
On the other hand, the share of Rs. 500 notes in total value and the volume of banknotes in circulation have increased. Its volume increased from 25.4 percent in 2020 to 34.9 in 2022, whereas, its value jumped from 60.8 percent in 2020 to 73.3 in 2022.
Most preferred denomination for cash transaction
The survey found that Rs. 100 note is the most preferred denomination for cash transactions whereas, Rs. 2000 is the least preferred denomination.
Among the coins, Rs. 5 was found to be the most preferred denomination. The report revealed that Rs. 20 was the least preferred denomination among the coins.
The survey also found that the total value of banknotes and coins in circulation has increased continuously since 2020.
