The value of currency notes in circulation in the country has risen to Rs. 43.46 lakh crore. The Reserve Bank’s report states that this is the highest growth in the past five years.
According to the Reserve Bank report, after the demonetization drive in the country, the value of currency notes in circulation has increased to a level not seen in recent years. As of October 15, the value of money in circulation across the country has grown by 13.5% year on year to Rs. 43.46 lakh crore. This is the highest level in the past five years. At the same time, data shows that cash in hand has increased by 10.3% to Rs. 53.24 lakh crore.
After the demonetization drive in the country, the value of currency notes in circulation has been increasing.
With the aim of promoting digital transactions, among other things, the Central Government carried out demonetization in 2016. The old Rs. 500 and Rs. 1,000 notes were demonetized, and new Rs. 2,000 and Rs. 500 notes came into circulation.
However, the value of currency notes currently in circulation has increased by 13.5 percent compared with 2025.
According to the Reserve Bank of India’s economic status report, supported by foreign exchange reserves and liquidity injections, the currency in circulation in the country has recorded its fastest growth in the past five years.
The central government’s goal is to reduce the number of notes in circulation and increase online financial transactions. This will also eliminate the circulation of black money. The central government and the RBI have been continuously taking steps toward this.
Although online financial transactions have been increasing every year, the use of and demand for cash continue to rise without decreasing.
It has been reported that the regulatory measures taken this year to curb speculative activity in the foreign exchange market, the large-scale foreign investments raised by Indian banks from abroad, foreign borrowing, and the rupee conversion measures undertaken to bring funds into the domestic economy have all been major reasons for this extraordinary growth in liquidity.
The Reserve Bank said that foreign exchange reserves have been strengthened, while policymakers continue to monitor liquidity, inflation, and external risks.
