Five years after demonetisation, high value notes comprise 85.7% of total

The composition of the high value bank notes - Rs 500 and Rs 2,000 - in terms of their volume in the total circulation also underwent interesting changes over the last five years

When the demonetisation of notes of Rs 500 and Rs 1,000 denomination was announced in 2016 – the main objective of which was to curb black money – 86.4% of the currency in circulation was formed by those two high value notes. This, because people generally tend to hoard currencies with higher value.

A new Rs 500 bank note was put into circulation after the earlier Rs 500 notes were rendered invalid. The Rs 1,000 note was never printed again, instead a Rs 2,000 note got pumped into the system.

Value remains high

Five year later, the high value notes