India’s highest denomination currency note of Rs 2,000, introduced in November 2016 soon after demonetisation, has continued to fall in circulation share both in value as well as in number terms. 

The number of Rs 2,000 notes stood at 214 crore and accounted for just 1.6% of the total currency notes in circulation at the end of March 2022, according to the Reserve Bank of India (RBI) annual report released on Friday. 

Currency notes of all denominations in circulation stood at 13,053 crore as of March 2022, up from 12,437 crore a year ago.

As of March 2021, the number of Rs 2,000 notes stood at 245 crore and accounted for 2% of the total volume of notes in circulation. This was down from 274 crore a year ago or 2.4% of the total number of currency notes in circulation.

In value terms, Rs 2,000 notes in circulation fell to 13.8% of the total as of March 2022, from 17.3% a year ago and 22.6% in March-end 2020.

In volume terms, Rs 500 denomination constituted the highest share at 34.9%, followed by Rs 10 denomination banknotes, which constituted 21.3% of the total banknotes in circulation as on March 31, 2022, RBI’s annual report for 2021-22 said.

The number of Rs 500 denomination notes in circulation rose to 4,554.68 crore at the end of March this year versus 3,867.90 crore a year ago.

The Rs 500 denomination notes accounted for 31.1% share at the end of March 2021 and 25.4% as of March 2020. In value terms, these notes rose from 60.8% to 73.3% from March 2020 to March 2022.

The total value of currency notes in circulation of all denominations rose to Rs 31.05 lakh crore at the end of March 2022 from Rs 28.27 lakh crore a year ago.

"In value terms, the share of Rs 500 and Rs 2000 notes together accounted for 87.1% of the total value of bank notes in circulation as on March 31, 2022, as against 85.7% at end-March 2021," the report said.

The value and volume of bank notes in circulation increased by 9.9% and 5% cent, respectively, during 2021-22 as against 16.8% and 7.2%, respectively, during 2020-21.

“The focus of currency management during the year continued on making available adequate quantity of clean notes in circulation, especially in the backdrop of the second wave of the Covid-19 pandemic. The Reserve Bank made an attempt to gauge trends and preferences in public usage of banknotes with a view to optimise the currency management operations," the central bank stated in its annual report on currency circulation.

The Currency in Circulation (CiC) includes banknotes and coins. Presently, Reserve Bank of India (RBI) issues banknotes in 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 50 paise and Re 1, Rs 2, Rs 5, Rs 10 and Rs 20 denominations.

In November 2016, the government withdrew Rs 500 and Rs 1,000 notes in an attempt to curb black money. Though a new Rs 500 note was printed, Rs 1,000 denomination notes were discontinued.