Friday, May 28, 2021

RBI announces Rs 2,000 notes not printed in last two years

RBI announces Rs 2,000 notes not printed in last two years

The Reserve Bank of India (RBI) said on Thursday it would not provide 2,000 rupees worth of new notes in the 2021-2022 financial year. The central bank had not added any new stocks of high-denomination banknotes in previous years.

The information comes from the RBIs annual report, which was published on 26 May. The report also highlighted the importance of liquidity to economic recovery.

The total supply of paper money in FY21 remained low at 0.3 percent to 2,23,301 lakh pieces down from 2,23,875 lakh pieces a year earlier, the RBI annual report said. 

The RBI had stated in its last annual report that not a single 2,000 rupee note would be printed in FY20 because it had stopped printing high-quality banknotes due to security concerns. The central bank kept the volume of higher denominations low as the country did not put new banknotes into circulation this year. In terms of volume, the 500 rupee banknotes account for 31.1 percent of all banknotes in circulation.

In 2016, the central government announced the surprising demonetization of two high-value banknotes - the old 500 rupee notes and the older 1000 rupee notes - in a bid to curb the hoarding of black money. The number of 2,000 rupee banknotes in circulation fell from 33,632 at the end of March 2018 to 32,910 at the end of March 2019 and then to 27,398 at the end of March 2020, the RBIs' 2020 annual report said. A further 2000 rupee banknote was subsequently put into circulation.
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