Bank notes in circulation in the economy increased 17% in FY19 to Rs 21.1 trillion from Rs 18.03 trillion in FY18, the Reserve Bank of India (RBI) said in its Annual Report of 2018-19, which was released on Thursday.
In volume terms, the bank notes in circulation increased 6.2% to 108.76 billion pieces from 102.4 billion during FY19, the RBI said in its report. The Reserve Bank follows a July-June financial year.
The Rs 500 and Rs 2,000 bank notes constituted 82.2% of the total value of bank notes in circulation at the end of March 2019, as compared to 80.2% at the end of March 2018. Also, the Rs 500 note, which accounted for 49.2% of the value of bank notes in circulation in FY18, increased to 51% in FY19.
In volume terms, Rs 10 and Rs 100 bank notes constituted 47.2% of bank notes in circulation at end-March 2019, as against 51.6% a year earlier.
Counterfeit notes detected in Rs 10, Rs 20, Rs 50 denomination notes increased 20.2%, 87.2% and 57.3% in 2018-19, as compared to 2017-18. During the previous year, 12,728 counterfeit Rs 200 notes were detected, as against 79 the previous year. The new Rs 200 notes were introduced in August 2017. On the contrary, cases of Rs 100 counterfeit notes detected declined 7.5%.
The RBI also said they will introduce varnished bank notes of Rs 100 denomination on a field trial basis, in order to increase the life of bank notes.