Mumbai: Currency with the public declined 2.28% year-on-year during the April-October period of 2023. Data released by the Reserve Bank of India (RBI) revealed that currency with public for the fortnight ended October 20, 2023 stood at Rs 32.01 lakh crore. This is down by Rs 74,728 crore in the current financial year so far. This is for the first time after the government announced demonetisation on November 8, 2016.
The decline is mainly due to the Reserve Bank of India’s (RBI) decision to withdraw the Rs 2,000 denomination notes from circulation on May 19 this year. While the value of Rs 2,000 notes was at Rs 3.62 lakh crore when the withdrawal was announced, notes worth Rs 10,000 crore notes are yet to come back to the RBI.
However, cash with public is still higher by 78% or Rs 14.04 lakh crore from Rs 17.97 lakh crore on November 4, 2016. Cash with the public has surged by 251% from Rs 9.11 lakh crore recorded on November 25, 2016, two weeks after Rs 500 and Rs 1,000 notes were withdrawn from the system.
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According to the RBI data, in the fortnight ended October 20, 2023, the currency with the public rose by Rs 13,642 crore – on the eve of the Diwali. It rose by Rs 1.12 lakh crore as of October 2023 as against Rs 2.63 lakh crore a year ago.
Currency with the public is arrived at after deducting cash with banks from total currency in circulation (CIC).Currency in circulation refers to cash or currency within a country that is physically used to conduct transactions between consumers and businesses.
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