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new Delhi3 days ago
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- People deposited more cash in lockdown due to Kovid-19 epidemic
- On January 1, 2021, there was a currency of Rs 27.70 lakh crore in circulation.
- Circulation increased to Rs 5 lakh crore in calendar year 2020
Due to the uncertainty of the Kovid-19 pandemic, people have given priority to cash. That is why in the first nine months of the current financial year, there has been a 13% higher currency in circulation. According to the latest data from the Reserve Bank of India (RBI), there was a currency of Rs 27,70,315 crore in circulation on 1 January 2021. Whereas on March 31, 2020, the currency of Rs 24,47,312 crore was in circulation. In the same period a year ago, there was a 6% growth in circulation in circulation.
Currency in circulation reached a high level in the current financial year
Madan Sabnavis, Chief Economist, CARE Ratings, says that the currency in circulation has reached a high level in the current financial year. Sabnavis says that during lockdown people had accumulated more currency to deal with any need. He said that whenever there was a crisis-like situation, there was a tendency to deposit cash in the houses. This is the reason that the demand for cash has been increasing.
RBI’s annual report also said that the currency will increase
The RBI released the Annual Report for 2019-20 in August 2020. This report said that due to the uncertainty of the Kovid-19 epidemic, the demand for currency has started increasing. However, the RBI had taken several measures to deal with the increased demand for cash.
Rs 5 lakh crore currency increase in calendar year 2020
According to RBI data, currency in circulation has increased by 22.1% in the calendar year 2020. In circulation, the currency of Rs 5,01,405 crore has increased to Rs 27,70,315 crore as on 1 January 2021. Banknotes and coins are counted in currency in circulation. Currently, RBI issues notes of Rs 2,5,10,20,50,100,200,500 and 2000 rupees. Apart from this, coins of 50 paise, 1,2,5,10 and 20 rupees are also counted in currency.
The value of banknotes included in circulation rose 14.7% in FY 2020
According to the RBI Annual Report, the value of banknotes included in circulation has increased by 14.7% and volume by 6.6% in FY 2020. In terms of value, the 500 rupees and 2000 rupee notes accounted for 83.4% of the total bank notes involved in circulation at the end of March 2020. At the same time, 10 and 100 rupee notes accounted for 43.4% of the total bank notes included in circulation in terms of volume. During this period there was a sharp increase in bank notes of 500 rupees in circulation.