RBI’s annual report revealed that CASH in circulation has increased to pre -demonetization level and Rs 2000 denomination note was not printed at all during 2019-20.
Rs 2000 currency note is all set to go ?, The Reserve Bank of India in its FY-20 annual report for the year ending on June 30 has revealed that the currency in circulation has increased to Rs 26.60 lakh crore in June 2020, compared to Rs 24.47 lakh crore in March 2020 – a hike of 10% since the lock-down.
The currency-GDP ratio increased to its pre-demonetization level of 12% in 2019-20 from 11.3% a year ago, indicating the rise in cash-intensity in the economy in response to the pandemic.
That was the period when India’s gross domestic product (GDP) fell to 4.2 percent. Despite a consistent fall in the GDP numbers and consequently the nominal growth, the currency in circulation is on the rise.
Rs 2000 denomination note was not printed at all during 2019-20, Rs 2000 currency note is all set to go?
Ironically, the increase in currency is taking place at a time when digital payment transactions are hitting anew high every month with UPI transactions touching 150 crore last month.
The annual report is also giving an indication that RBI is slowly phasing out Rs 2000 currency notes as Rs 2000 denomination note, introduced during demonetization in 2016, was not printed at all during 2019-2020.
The number of Rs 2,000 currency notes in circulation has come down from 33,632 lakh pieces at the end of March 2018 to 27,398 lakh pieces at end of March 2020.
Read the complete details on the below-mentioned links:- Currency in circulation hits pre-demonetisation levels