Lok Sabha Question No. 87 (UNSTARRED), answered on 2019-11-18
Subject: Demonetised Currency
Ministry: FINANCE
Asked by: Manish Tewari

## GOVERNMENT OF NNDIA MINISTRY OF FINANCE

## LOK SABHA UNSTARRED QUESTION NO. 87

## ANSWERED ON 18.11.2019

## DEMONETISED CURRENCY

## 87. SHRI MANISH TEWARI:

Will the Minister of FINANCE be pleased to state:

- (a) the details of the Reserve Bank of India's (RBI) estimate on 8th November, 2016 of Rs. 500 & Rs 1000 in circulation that were demonetized;
- (b) the total amount of old currency which came into banking system after RBI put-out of Rs 15.41 lakh crore in its Annual Report of 2017-18; figure
- (c) the quantum of new currency notes of Rs. 500 and Rs. 2000 that were pushed into banking system between 8th November 2016 and 31st March 2017;
- whether RBI can   certify that new currency of Rs 500 and 2000 that   replaced demonetized currency was equivalent to estimate of demonetized currency i.e. 15.41 lakh crore mentioned by the RBI in its Annual Report of 2017-2018,if s0, the details thereof and the total amount of   currency discarded due to   printing errors etc. when new currency   replaced demonetized one; and
- (e) whether more currency was printed by RBI than its estimate of amount demonetized and if the exact amount printed along with the reasons therefor? SO,

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a): The total value of Specified Bank Notes (SBNs) or demonetised notes in circulation as which  the total number and value of SBNs of Rs. 500 denomination were 17128.91 million pieces and Rs. 8,564.45 billion respectively and the total number and value of SBNs of Rs 1000 denomination were 6853.48 million pieces and Rs. 6853.48 billion respectively:
- (b): The total value of SBNs returned from circulation is Rs.15,310.73 billion:
- (c)= 2941   billion) and 3,285 mpcs (Rs: of Rs. 500 and Rs. 2000   denomination banknotes respectively.

(d): The total value of SBNs in circulation as on November 08, 2016,post verification and reconciliation was Rs.15,417.93 billion. During a short span from November 9 to December 31, 2016, the Reserve Bank  pumped in 23800 million  pieces of bank notes   into  circulation aggregating Rs.5,540 billion in values. The   pace of   remonetisation continued  ceaselessly thereafter also and the notes in circulation (NIC) as on March 31, 2017 was Rs. 13,102 billion of which Rs. 9512 billion was in Rs. 500 and Rs. 2000 denominations. As on March 31 2018, the share of Rs.S00 and Rs.2000 banknotes was 80.2 per cent 14,460 billion) of the total value of banknotes in circulation which stood at Rs.18,037 billion. As on March 31,2019, the share of Rs.500 and Rs.2000 banknotes was 82.2 per cent (Rs. 17,341 billion) of the total value of banknotes in circulation which stood at Rs.21,109 billion. (Rs.

The total amount of currency discarded due to printing errors at Bhartiya Reserve Bank Note Mudran Private Ltd. During 2016-17 were 19.59 mpcs of Rs. 500 denomination and 139.88 mpcs of Rs 2000 denomination. At Security Printing and Minting Corporation of India Ltd. (SPMCIL), the total manufacturing wastage   including   printing errors was around 3%. However; there is no segregated data available for printing error at SPMCIL.

- (e): The volume and value of Rs. 500 and Rs. 2000 denominations supplied by the printing presses to the offices of RBI during the years 2016-17,2017-18 and 2018-19 are as under:

| Denomination   | Unit           |   2016-17 |   2017-18 | 2018-19   |
|----------------|----------------|-----------|-----------|-----------|
| Rs. 500        | Vol (in mpcs)  |      7260 |      9693 | 11468     |
|                | Value (Rs. bn) |      3630 |      4847 |           |
| Rs. 2000       | Vol (in mpcs)  |      3504 |       151 | 47        |
|                | Value (Rs. bn) |      7008 |       302 | 94        |

The   quantum of banknotes that needs to be   printed, broadly depends on the requirement for meeting the demand for banknotes due to inflation, GDP growth; replacement of soiled banknotes and reserve stock requirements.

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