The Reserve Bank of India (RBI) clarified on June 17 that reports of missing Rs 500 notes are incorrect and stem from a misinterpretation of information obtained through the Right to Information Act, 2005 from printing presses.
According to the RBI, certain sections of the media have circulated reports suggesting the disappearance of banknotes printed by banknote printing presses. However, the central bank stated that these reports are inaccurate and result from a misinterpretation of the information obtained through the Right to Information Act.
The RBI assured that all banknotes supplied from printing presses to the RBI are duly accounted for. It further highlighted the presence of robust systems to reconcile the banknotes printed at the presses and supplied to the RBI, which include protocols to monitor production, storage, and distribution.
The RBI urged the public to rely on information published by the RBI from time to time concerning such matters. Earlier, news reports had claimed a discrepancy between the number of newly designed Rs 500 notes issued by the mints and the number received by the RBI. These reports were based on responses to an RTI query.
According to data obtained through the Right to Information Act by activist Manoranjan Roy, it was reported that the Currency Note Press, Nashik had printed 375.450 million pieces of the newly designed Rs 500 note. However, RBI records indicated that only 345.000 million pieces were received between April 2015 and December 2016.
The RBI’s recent clarification addresses these specific reports and encourages the public to refer to information provided by the RBI for accurate details on the matter.
As per the RBI annual report 2022-23, the combined value of Rs 2,000 and Rs 500 banknotes accounted for 87.9 percent of the total circulation as of March 31, 2023. In terms of volume, the Rs 500 denomination had the highest share at 37.9 percent, followed by Rs 10 denomination banknotes at 19.2 percent.
The previous annual report of the RBI stated that the circulation of Rs 2,000 banknotes represented a total value of Rs 3.62 lakh crore, constituting only 10.8 percent of notes in circulation on March 31, 2022.
Regarding coins, the total value of coins in circulation witnessed an 8.1 percent increase in 2022-23, while the total volume increased by 2.6 percent. As of March 31, 2023, coins in denominations of Rs 1, Rs 2, and Rs 5 together constituted 83.1 percent of the total volume of coins in circulation, accounting for 72.3 percent of the total value.
On May 19, the RBI announced its plan to withdraw Rs 2,000 notes from circulation based on a review, in line with the “Clean Note Policy.” It advised banks to cease issuing these notes with immediate effect. As of June 8, approximately 50 percent of the Rs 2,000 notes have already returned to the banking system, according to the RBI.
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