RBI Annual Report 2023-24: Currency Updates and Coin Usage Insights

The Reserve Bank of India (RBI) released its annual report for the financial year 2023-24 today, on May 30, 2024, highlighting the banknotes and coins in circulation during the mentioned period.

In the report, the RBI stated that it focused on ensuring an adequate quantity of clean banknotes in circulation throughout the year. As part of this effort, the RBI undertook the process of withdrawing ₹2000 denomination banknotes.

The currency in circulation includes banknotes, central bank digital currency (CBDC), and coins. Currently, banknotes in circulation consist of denominations of ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2000. The RBI has ceased printing banknotes in the denominations of ₹2, ₹5, and ₹2000. Coins in circulation include denominations of 50 paise, ₹1, ₹2, ₹5, ₹10, and ₹20.

Banknotes in Circulation

Coins in Circulation

The issuance and management of currency (banknotes and coins) are handled by the RBI through its 19 issue offices, 2,794 currency chests, and 2,460 small coin depots across the country. As of March 31, 2024, the State Bank of India accounted for the highest share of currency chests.

The volume of banknotes and coins indented for 2023-24 was higher than in 2022-23. The supply of banknotes and coins also increased during 2023-24 compared to the previous year.

The report indicates that 3,058 lakh ₹1 coins were minted in FY 2023-24, a significant increase from the nil indents and supplies in 2021-22 and 1,000 lakh coins in 2022-23. In total, 12,056 lakh coins of denominations ₹1, ₹2, ₹5, ₹10, and ₹20 were supplied by the India Government Mint in FY 2023-24.

Additionally, the RBI conducted a survey to gain better insights into the usage and preferences for banknotes, coins, and digital modes of payment in the country. This exercise was part of an initiative to revamp the existing currency management architecture, leveraging state-of-the-art technologies to enhance operational efficiency. The survey concluded that the demand for ₹5 coins was the highest, followed by ₹2 and ₹10 coins. Regarding banknotes, respondents noted the easy availability of banknotes, particularly those of ₹100 and above. Over 80 percent of the respondents reported that they did not face a scarcity of banknotes in the past year. There was a preference for digital payments as transaction values increased. However, non-familiarity with digital payment modes and safety concerns were reported as impediments to the usage of digital payment options, especially in rural and semi-urban areas. In summary, the survey indicated that while cash remained prevalent, digital modes of payment were gaining traction among the public.

In the realm of numismatics, it's encouraging to note the significant production of ₹1 coins by the India Government Mint in FY 2023-24. With the Azadi Ka Amrit Mahotsav series potentially losing relevance as we approach the 78th year of independence in August 2024, there's a possibility of introducing a new definitive series. Given the high demand for ₹5 coins as per the survey, it would be advantageous if the Government of India also considers issuing circulating commemorative coins.