The increase in currency was seen despite the Modi govt’s demonetisation drive in 2016, which was implemented to reduce the amount of relative cash in circulation in the country.
Currency with the public has risen by around ₹1.4 lakh crore since demonetisation
Expansion of absolute cash in circulation has to be seen holistically with growth in GDP and uptick in digital transactions.
There is no such proposal, says the RBI; the apex bank supplies banknotes in denominations of ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500 and ₹2,000 in the country.
The ₹2,000 note share continues to drop in FY22; in value terms, the share of ₹500 and ₹2,000 notes together rose to 87.1% of total value of banknotes in circulation.
Cash has grown in prominence despite a very swift rise in digital payments in India over the last few years.
