scorecardresearchCash in circulation rose 14% annually after note ban: Report

Cash in circulation rose 14% annually after note ban: Report

Updated: 03 Jan 2023, 05:15 PM IST
TL;DR.
As a proportion of the gross domestic product (GDP, or the value of all goods and services produced), cash in circulation was more than a percentage point higher in April 2022 than April 2016.
The high-denomination notes accounted for 87.1 per cent of the total value of the currency in circulation in March 2022

The high-denomination notes accounted for 87.1 per cent of the total value of the currency in circulation in March 2022

Cash use has surged by a compound annual growth rate of 14.4 percent, faster than the 12.2 percent annual growth from 2011 to 2016, reported Business Standard.

As a proportion of the gross domestic product (GDP, or the value of all goods and services produced), cash in circulation was more than a percentage point higher in April 2022 than April 2016.

The high-denomination notes accounted for 87.1 percent of the total value of the currency in circulation in March 2022, compared to 86.4 percent in March 2016.

The average growth in fast-moving digital payments (IMPS or immediate payment service, UPI or unified payments interface, wallets, cards) was 44 percent between 2011-12 and 2015-16.

The share of high-value currency in total circulation has also more than doubled in the past 12 years.

Until 2016, 500 and 1,000 notes were considered high denomination and now 500 and 2,000 are high denomination notes.

In 2010, share of high value currency notes was 17.1 percent. It rose to 22.4 percent in 2015, 24.4 percent in 2016, 27.8 percent in 2020 and 36.5 percent in 2022.

The average increase in digital payments was 66 percent between 2017-18 and 2021-22. The average ticket size of UPI — the amount spent per transaction — has declined, but the volume has jumped 123 times between November 2017 and November 2022.

 

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First Published: 03 Jan 2023, 05:15 PM IST