India’s Currency Circulation Hits Double‑Digit Growth as Cash Use Persists

The RBI’s Deputy Governor Shirish Chandra Murmu warned that India’s cash stock is expanding at a double‑digit pace even as digital payments surge.

He explained that while the share of cash in day‑to‑day transactions is declining, the total amount of currency in the economy continues to rise sharply. This makes it difficult for the central bank to predict future cash demand and to align production and distribution capabilities.

According to Murmu, cash remains a critical payment channel for rural and semi‑urban populations, low‑income groups, senior citizens and small businesses. Preserving trust in clean, secure notes is essential for monetary sovereignty, a priority shared by central banks worldwide.

The RBI manufactures between 28 and 30 billion notes each year across six denominations and withdraws roughly 21 billion notes annually. At present, 176 billion notes are in circulation, compared with about $56 billion of US dollars and €30 billion of euros that were in global circulation at the end of last year.