Value of notes in circulation doubles post demonetisation

New Delhi, December 19

The Centre’s push to a cashless economy notwithstanding, the value of currency notes in circulation has doubled since 2016 when demonetisation was announced.

Curbing black money

The mission of the government is to move towards less-cash economy to curb black money and to promote digital economy. — N Sitharaman, FM

Data shared by Finance Minister Nirmala Sitharaman in the Lok Sabha on Monday showed that the value of notes in circulation was Rs 31.92 lakh crore in December 2022, up from Rs 16.41 lakh crore in 2016.

The minister also said the notes in circulation witnessed an annual growth of 7.98 per cent to Rs 31.92 lakh crore as of December 2, 2022, as against Rs 29.56 lakh crore as of December 2021. The volume of currency notes in circulation in 2016 was 90,266 million pieces, which rose consistently through subsequent years and was 1,30,533 million pieces in 2022. The volume of notes in circulation rose by 45 per cent between 2016 and 2022.

“The demand for currency notes depends on several macro-economic factors, including economic growth and level of interest rates,” the FM said while answering a question by MP P Velusamy.

She stressed that the mission of the government was to move towards a less-cash economy to reduce the generation and circulation of black money and to promote the digital economy. Both the government and the RBI had taken measures to promote a less-cash economy and encourage digital payment, the minister said.