Currency in circulation drops to Rs11.73 trillion after demonetisation, says govt
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New Delhi: The total value of currency notes in circulation has come down by a quarter to Rs11.73 trillion post demonetisation, Parliament was informed on Friday.
The value had steadily risen up to 31 March 2016 since March-end 2014.
There were Rs16.41 trillion worth currency notes in circulation as on 31 March last year, which has come down to Rs11.73 trillion as on 3 March 2017, minister of state (MoS) for finance Arjun Ram Meghwal said in a written reply to the Lok Sabha.
“The reduction in notes in circulation is due to demonetisation of specified bank notes,” he said.
As on 31 March 2014, there were Rs12.82 trillion worth of notes in circulation, which went up to Rs14.28 trillion till 31 March 2015 and further to Rs16.41 trillion at the end of March 2016.
Prime Minister Narendra Modi on 8 November announced demonetisation of Rs500 and Rs1,000 notes, which accounted for 86% of the total currency in circulation. Post demonetisation, the government has come up with new Rs500 and Rs2,000 notes with added security features.
Meghwal said that up to February 2017, there were 1.9 billion and 1.03 billion Rs5 and Rs10 coins, respectively, in the market. Besides, there were 2.6 billion Rs10 and 3.6 billion Rs20 notes.
To a query regarding the cost of printing new Rs500 and Rs2,000 notes, finance minister Arun Jaitley said the cost price of the currency note is the function of direct and indirect material and labour costs, which changes every year.
“Differences also arise due to type and age of machines and the skill level of the employees... Due to the differences, the cost of notes varies from Rs2.87 to Rs3.09 per Rs500 note and from Rs3.54 to Rs3.77 for a Rs1,000 note. The cost of Rs2,000 note is in the same range as that of the old Rs1,000 note,” Jaitley said.
There are four currency printing presses—two with the Security Printing and Minting Corp. of India Ltd (SPMCIL) and two with the Bharatiya Reserve Bank Note Mudran (P) Ltd (BRBNMPL).