CiC grew by Rs 3,23,003 crore, or 13.2 per cent, to Rs 27,70,315 crore as on January 1, 2021 from Rs 24,47,312 crore as on March 31, 2020, in line with latest knowledge launched by the Reserve Financial institution of India (RBI).
Within the April-December interval of FY2020, it had grown by almost 6 per cent.
Based on Care Scores Chief Economist Madan Sabnavis, the expansion in forex in circulation to date within the present fiscal has been excessive as folks had been accumulating extra cash to meany exigency throughout the lockdown.
“Each time there’s a crisis-like scenario, there’s a tendency for households to latch on to money. That’s the reason there was a rise in demand for money. What you see is nothing else however a precautionary motive overwhelming every little thing,” Sabnavis stated.
The RBI in its annual report for 2019-20, launched in August 2020, had additionally talked about that demand for forex began to extend within the wake of heightened uncertainty attributable to the COVID-19 pandemic.
The central financial institution additionally took a sequence of measures so as to meet the improved demand.
In the course of the calendar yr 2020, CiC grew 22.1 per cent, or Rs 5,01,405 crore, to Rs 27,70,315 crore as on January 1, 2021.
CiC consists of banknotes and cash. At current, RBI points notes in denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2,000.
Cash in circulation comprise these of fifty paise and Re 1, Rs 2, Rs 5, Rs 10 denominations, and the lately launched coin of Rs 20 denomination.
As per RBI’s annual report, the worth and quantity of banknotes in circulation elevated 14.7 per cent and 6.6 per cent, respectively, in FY20.
In worth phrases, Rs 500 and Rs 2,000 banknotes collectively accounted for 83.4 per cent of the full worth of banknotes in circulation at end-March 2020, with a pointy improve within the share of Rs 500 banknotes, it had stated.
In quantity phrases, Rs 10 and Rs 100 banknotes constituted 43.4 per cent of the full banknotes in circulation at end-March 2020, RBI had stated within the annual report.