The Reserve Bank of India (RBI) has reported that banknotes in circulation have witnessed increase during 2020-21, on account of precautionary holding of cash by people due covid pandemic.
RBI stated in annual report that the value of banknotes in circulation increased 16.8 percent during 2020-21 as against as increase of 14.7 percent during 2019-20. While volume of banknotes has been by 7.2 percent during 2020-21 as against increase of 6.6 percent during 2019-20.
Further, in value terms, the share of Rs 500 and Rs. 2000 banknotes together accounted for 85.7 percent of the total value of banknotes in circulation as on 31st March, 2021, as against 83.4 percent as on 31st March 2020.