The RBI will soon introduce vanished banknotes of Rs. 100 on a field trial basis to increase the tenure of the banknotes and also look at ways to make then disabled-friendly in 2020 financial year.
In the annual report for 2019, the RBI has also said that the printing cost of its note has come down to Rs. 4811 crore in the 2019 fiscal year from Rs. 4912 in 2018, reflects normalization in operations post-demonetization.
It continued that after disposing of the demonetized notes, the new efforts are to dispose of the soiled notes of smaller value which are high. However, around 21000 fake pieces each of the newly introduced Rs. 2000 and Rs. 500 notes were detected in the reporting year.
Besides efforts to shift to digital payments and guide in a digital payment economy, the currency in circulation has raised by 17 percent to Rs. 21.10 lakh crore as of March 2019.
The demand for Rs. 500 bill that is the second-highest denomination after Rs. 2000 note, has been the highest and now accounts for around 51 percent of the currency value in circulation, reads the released report.
The report continued that “the value and volume of banknotes in circulation increased by 17 percent and 6.2 percent to Rs. 21.10 lakh crore and 108759 million pieces, respectively, in FY19.”
It is further noted that one of the objects behind the note ban of November 8, 2016, is considered as 86 percent of the outstanding bill useless and had an impact on the economy as a whole, amid at encouraging digital payments and bring down the use of cash transactions.
However, the public has returned back 99.8 percent of the cancelled notes back into the system, leads many voices to enquire the rationale for the very exercise itself.
The annual report records a 59 percent increase in retail electronic payment transactions to 23.3 billion.
The share of Rs. 500 notes stood at 42 percent as of June 2018, while the same amount for Rs. 2000 notes, decrease in value of Rs. 6.58 lakh crore as of March 2019. However, the share of higher value of Rs. 2000 and Rs. 500 notes were almost steady at 82 percent.
Hence, there was a noted fall in the instance of fake currency found in 2019 to 3.17 lakh pieces down from 5.22 lakh in 2018, and 7.62 lakh in 2017, said the RBI.