According to a new annual report released by the Reserve Bank of India (RBI)
Mumbai, Dt
The exercise was initiated by the Government of India in November 2016 to get rid of black money by canceling Rs.500 and Rs.1000 notes in circulation. However, after it came to light that more money was deposited in the bank than the canceled notes, the government called for a digital payment revolution to reduce the cost of printing, transporting and other transactions and to make financial transactions transparent. Special incentives were given for conducting financial transactions through bank portals, mobile apps, payment wallets and other ways.
However, it has once again proved that cash is the king of the country and without cash transactions the economy of the country can come to a standstill. According to a new annual report released by the Reserve Bank of India, the value of banknotes in circulation in the country has increased by 4.5 per cent to Rs 21,08,31 crore. At the same time, the number of banknotes has also increased by five per cent to 16.04 lakh, according to the Reserve Bank’s annual report for the year 2021-2. In the year 2030-21, the proportion of currency notes increased by 12.5%. It is pertinent to note here that the total cash currency in the country was around Rs. In these six years, the amount of currency notes or cash has doubled. The circulation of Rs 500 notes has increased in the financial year 2021-26, while the supply has been declining as the central government and the Reserve Bank have restricted the supply of new Rs 2,000 notes. The proportion of these two types of notes has increased from 8.4 per cent at the end of March 2021 to 6.1 per cent at the end of March 2061. At the end of March 2009, the number of Rs 500 denomination notes was 2.7 per cent of the total notes, followed by Rs 21.5 per cent of the total Rs 10 notes, the report said.
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