Demonetisation after effects, led Currency Circulation drop to Rs 11.73 lakh cr.
Gradually, Demonetisation is showing its’ side effects. The aggregate of currency notes in circulation has decreased to a quarter to Rs 11.73 lakh crore, which is informed to the Parliament today.
The value was observed to be progressively rising from March 31, 2016 since March-end 2014
Till March 31 2016, Currency Notes worth Rs 16.41 lakh crore was in circulation, and now it drastically reached to Rs 11.73 lakh crore as on March 3, 2017. This was told by the Minister of State for Finance Arjun Ram Meghwal in a written reply in Lok Sabha
“The reduction in notes in circulation is due to demonetisation of specified bank notes,” he said.
Until March 31, 2014, Currency notes in circulaton was Rs 12.82 lakh crore, which boosted up to Rs 14.28 lakh crore till March 31, 2015 and further to Rs 16.41 lakh crore at the end of March 2016.
On November 8, last year, Prime Minister Narendra Modi declared the demonetisation of 500 and 1,000 rupee notes, which accounted for 86 per cent of the total currency in circulation.
After demonetisation, New 500 and 2,000 rupee notes with more security features were circulated.
MoS for Finance, Meghwal told that up to February 2017, 1.9 billion and 1.03 billion Rs 5 coins and Rs 10 coins, respectively, was circulating in the market. Additionally, 2.6 billion Rs 10 notes and 3.6 billion Rs 20 notes, respectively were also included.
When asked, Finance Minister Arun Jaitley, declared a significant information on the cost of printing new 500 and 2,000 notes. He said the cost price of the currency note is the function of direct and indirect material and labour costs, which tend to change 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 Rs. 2.87 to Rs. 3.09 per Rs. 500 note and from Rs. 3.54 to Rs. 3.77 for a Rs. 1,000 note. The cost of Rs. 2,000 note is in the same range as that of the old Rs. 1,000 note,” Jaitley said.
Moreover, He said, there are four printing presses in India for printing currency notes. Out of which Security Printing and Minting Corporation of India holds two and the rest two belongs to Bharatiya Reserve Bank Note Mudran Private (BRBNMPL).