The Reserve Bank of India (RBI) said that the value and volume of banknotes in circulation increased during 2022-23, with the Rs 500 notes enjoying the highest share.

In FY23, the value and volume of banknotes in circulation increased by 7.8% and 4.4%, respectively, according to the RBI annual report released on Tuesday. A year ago, the comparative figures were 9.9% and 5%, respectively.

In value terms, the share of Rs 500 and Rs 2,000 banknotes accounted for 87.9% of the total value of banknotes in circulation as on 31 March 2023, up from 87.1% a year ago.

On 19 May, the RBI announced withdrawal of Rs 2,000 notes, and holders of the highest value currency have been given time from 23 May till September 30 to exchange or deposit them.

"In volume terms, Rs 500 denomination constituted the highest share at 37.9%, followed by Rs 10 denomination banknotes which constituted 19.2% of the total banknotes in circulation as on 31 March 2023," the RBI report said.

There were 5,16,338 lakh pieces 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 4,55,468 lakh.

The report also said there were 4,55,468 lakh pieces of Rs 2,000 notes amounting to Rs 3,62,220 crore at end-March.

In volume terms, the Rs 2,000 notes in circulation declined to 1.3% of total currency in circulation at end-March 2023 compared to 1.6% in the year-ago period. In value terms, it too declined to 10.8% from 13.8% at end-March 2022.

Presently, the banknotes in circulation comprise those of denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2,000. Coins in circulation comprise those of 50 paise and Rs 1, Rs 2, Rs 5, Rs 10 and Rs 20 denominations.

The RBI also launched e-Rupee during 2022-23 on a live-pilot basis.

The value of e-Rupee-Wholesale and e-Rupee-Retail in circulation stood at Rs 10.69 crore and Rs 5.70 crore, respectively, as on March 31, 2023.

The report also said both indent and supply of banknotes for 2022-23 were marginally higher by 1.6% than that of a year ago.

Like the previous years, there was no indent for printing of Rs 2,000 notes.

The report said that indent and supply of banknotes by BRBNMPL and SPMCIL stood at 2,26,000 lakh and 2,26,002 lakh pieces, respectively.

The total expenditure incurred on security printing during 2022-23 was Rs 4,682.80 crore as against Rs 4,984.80 crore in the previous year.

The RBI also disposed of 4,824 lakh pieces of soiled Rs 2,000 notes in the last fiscal, up from 3,847 lakh pieces a year ago.

The report further said that compared to 2021-22, there was an increase of 8.4% and 14.4% in the counterfeit notes detected in the denominations of Rs 20 and Rs 500 (new design), respectively.

The counterfeit notes detected in the denominations of Rs 10, Rs 100 and Rs 2,000 declined by 11.6%, 14.7% and 27.9%, respectively.

"During 2022-23, out of the total Fake Indian Currency Notes (FICNs) detected in the banking sector, 4.6% were detected at the Reserve Bank and 95.4% at other banks," the report said.