RBI annual report says, number and value of Rs 2000 notes in circulation declined during the year ended March 2020, even as the Rs 500 notes in circulation sharply increased. Rs 2,000 notes were not printed in 2019-20, while 1,200 crores pieces of Rs 500 notes were printed. The central bank printed 5 crore Rs 2,000 notes in 2018-19. While 32,910 lakh pieces valued at Rs 6,58,199 crore of Rs 2,000 notes were in circulation in March 2019, the numbers declined to 27,398 lakh and Rs 547,952 crore in March 2020. Now Rs 2,000 notes constitute only 22.6 percent of the total value, as against 37.3 percent in 2018 and 31.2 percent in 2019.
The value of Rs 500 notes spurted sharply to Rs 14,72 lakh crore in March 2020 from Rs 10.75 lakh crore a year ago. The number of Rs 500 notes also rose from 215,176 lakh pieces in 2019 to 294,475 lakh pieces. Significantly Rs 500 notes constitute 60.8 percent of the total value of banknotes in India, up from 51 percent last year. The indent of banknotes for 2019-20 was lower by 13.1 percent than that of a year ago. The supply of banknotes during 2019-20 was lower by 23.3 percent than in the previous year mainly due to the disruptions caused by the outbreak of COVID-19 and the ensuing lockdown. The value and volume of notes in circulation increased by 14.7 percent and 6.6 percent respectively, during the financial year-2020.