Rising prices: Inflation: from 2004 to 2014, the money in circulation has increased from 3600 billion to 12000 billion INR.

With several years of sustained inflation and economic growth, the money in circulation was sure to rise. According to the Reserve Bank of India (RBI),Rs.14.265 trillion in currency notes was in circulation on 20 March, accounting for 12.3% of India’s gross domestic product (GDP). This is up from Rs.12.835 trillion a year ago.

The two highest denominations (Rs.500 and Rs.1,000) have seen the highest growth rates by far, followed by the Rs.20 note. The Rs.50 note has seen a sharp decline in production.
The RBI gets the most value for every note printed of these denominations (in terms of cost as a percentage of value of the note). Add to that the fact that the higher denominations see far less wear and tear and so have to be replaced less frequently, and it looks like printing money will gradually become cheaper for the RBI