The increase in currency was seen despite the Modi govt’s demonetisation drive in 2016, which was implemented to reduce the amount of relative cash in circulation in the country.
There is no such proposal, says the RBI; the apex bank supplies banknotes in denominations of ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500 and ₹2,000 in the country.
The ₹2,000 note share continues to drop in FY22; in value terms, the share of ₹500 and ₹2,000 notes together rose to 87.1% of total value of banknotes in circulation.