The Reserve Bank of India (RBI) has clarified on June 17 that reports regarding missing Rs 500 notes are incorrect and based on an erroneous interpretation of information obtained under the Right to Information Act, 2005 from the printing presses.

According to the RBI, certain sections of the media have circulated reports alleging the disappearance of banknotes printed by banknote printing presses. However, the central bank emphasied that these reports are not accurate and are a result of misinterpretation of the information obtained through the Right to Information Act.

The RBI said all banknotes supplied from printing presses to the RBI are properly accounted for. It further said robust systems are in place to reconcile the banknotes printed at the presses and supplied to the RBI, including protocols to monitor production, storage, and distribution.

The RBI urged the public to rely on information published by the RBI from time to time regarding such matters. Earlier, news reports had claimed that while the mints issued 8,810.65 million pieces of the newly designed Rs 500 note, the RBI had only received 7,260 million. These reports were based on responses to an RTI query.

The report cited data obtained through the Right to Information Act by activist Manoranjan Roy, stating that 375.450 million pieces of the newly designed Rs 500 note were printed by the Currency Note Press, Nashik. However, RBI records indicate that only 345.000 million pieces were received between April 2015 and December 2016.

The RBI’s clarification addresses these specific reports and urges the public to refer to information provided by the RBI for accurate information on the matter.

The share of Rs 2,000 and Rs 500 banknotes in circulation accounted for 87.9 percent in value term of the total circulation as on March 31, 2023, according to the RBI annual report 2022-23.

Further, the report said in volume terms, Rs 500 denomination constituted the highest share at 37.9 percent, followed by Rs 10 denomination banknotes, which constituted 19.2 percent of the total banknotes in circulation as on March 31, 2023, the report said.

In the last annual report of the RBI, the circulation of Rs 2,000 banknotes showed the total value of Rs 3.62 lakh crore, constituting only 10.8 percent of notes in circulation on March 31, 2022.

On the coins front, the total value of coins in circulation increased by 8.1 percent in 2022-23, while the total volume increased by 2.6 percent. As on March 31, 2023, coins of Rs 1, Rs 2, and Rs 5 together constituted 83.1 percent of the total volume of coins in circulation, while in value terms, these denominations accounted for 72.3 percent.The RBI on May 19 said it plans to withdraw Rs 2,000 notes from circulation based on a review.

This was in pursuance of the “Clean Note Policy”, and it advised banks to stop issuing these notes with immediate effect. Around 50 per cent of the Rs 2000 notes have already come back to the banking system, the RBI said on June 8.