It has been observed that there is a relatively higher number of Rs. 500 notes in circulation, while, under the circumstances, there are lower levels of Rs. 200, Rs. 100, Rs. 50, Rs. 20, and Rs. 10 notes, as well as coins of Rs. 20, Rs. 10, Rs. 5, Rs. 2, and Re. 1.
Ideally, the total value of the Rs. 500 notes should at least equal the total value of the lower denomination notes and coins to ensure smooth transactions at all levels. In fact, the total value of the lower denomination notes and coins should exceed the total value of the Rs. 500 notes.
Therefore, the RBI should ensure that the printing of notes and minting of coins are streamlined as required. Additionally, the distribution of all denomination notes and coins should be even through banks all over the country, and damaged notes should be promptly taken out of circulation.
