Mumbai, August 26: RBI in its annual report for 2019-20 released on Tuesday said that since March 20, currency in circulation has risen to 26.9 lakh crore—a hike of 10 percent since the lockdown began. At the same time, the number of Rs 2000 notes in circulation has dipped sharply in two years. The RBI further mentioned it did not print any Rs 2000 currency note in 2019-20.

As per reports, the government had earlier informed that it would be gradually reducing the number of Rs 2,000 notes from circulation as these notes were introduced for speedy remonetisation in the aftermath of demonetisation in 2016. The central bank printed 5 crore Rs 2,000 notes in 2018-19. Rs 2,000 Currency Notes Update: Nirmala Sitharaman Dismisses Reports of 'Banks Being Instructed to Stop Putting Rs 2,000 Notes in ATMs'.

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 per cent of the total value of banknotes in India, up from 51 per cent last year.

During this period, the currency to GDP ratio increased to pre-demonetisation levels of 12 per cent in 2019-20. The coronavirus pandemic has led many households to hoard banknotes.

(The above story first appeared on LatestLY on Aug 26, 2020 10:48 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).