Lok Sabha Question No. 3529 (UNSTARRED), answered on 2025-08-11
Subject: Increase in Circulation of Currency
Ministry: FINANCE
Asked by: Dr. Amol Ramsing Kolhe, Shri Mohite Patil Dhairyasheel Rajsinh, Smt. Supriya Sule, Shri Sanjay Dina Patil, Prof. Varsha Eknath Gaikwad, Shri Bhaskar Murlidhar Bhagare

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3529

TO BE ANSWERED ON MONDAY, 11 TH  AUGUST 2025 / SRAVANA 20, 1947 (SAKA)

## Increase in Circulation of Currency

3529. Shri Sanjay Dina Patil:

Prof. Varsha Eknath Gaikwad:

Smt. Supriya Sule:

Shri Bhaskar Murlidhar Bhagare:

Shri Mohite Patil Dhairyasheel Rajsinh:

Dr. Amol Ramsing Kolhe:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is a fact that the total currency in circulation has significantly increased from Rs. 13.35 lakh crore in March 2017 to Rs. 35.15 lakh crore by March 2024 and if so, the details thereof;
- (b)  whether  the  Government  is  aware  that  during  the  same  period,  digital  transactions  via  the Unified Payments Interface (UPI) have risen sharply with around 172 billion UPI transactions recorded in the calendar year 2024;
- (c) the reasons identified for such a steep rise in circulation of currency particularly in States like Maharashtra;
- (d) whether the Government or the Reserve Bank of India has conducted any study to analyze the trend of increasing cash usage alongside digital payment growth and if so, the findings thereof; and
- (e) the corrective steps taken by the Government to ensure a gradual transition towards a less-cash economy while maintaining financial inclusion and economic accessibility?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a)  to  (c): As  per  the  Reserve  Bank  of  India  (RBI),  the  details  of  currency  in  circulation  from Financial Year 2016-17 to Financial Year 2023-24 are as follows:

| As on          | Currency in circulation (₹ crore)   |
|----------------|-------------------------------------|
| March 31, 2016 | 16,63,300                           |
| March 31, 2017 | 13,35,200                           |
| March 31, 2018 | 18,29,318                           |
| March 31, 2019 | 21,36,736                           |
| March 31, 2020 | 24,47,280                           |
| March 31, 2021 | 28,53,733                           |
| March 31, 2022 | 31,33,691                           |
| March 31, 2023 | 33,78,486                           |
| March 31, 2024 | 35,11,428                           |

The volume of UPI transactions has increased from 92 crores in FY 2017-18 to 13,116 crores in FY 2023-24, with 172 billion UPI transactions processed in the year 2024.

As per RBI, the increase in currency in circulation is a function of demand of a growing economy, and is driven by the growth in GDP, inflation, interest rate, etc.  State-wise data on currency in circulation is not maintained by the Reserve Bank of India (RBI).

(d) & (e): Government of India or RBI has not commissioned / conducted any study specifically analysing the trend of cash usage vis-à-vis growth in digital payments.  The Government, RBI and the  National  Payments  Corporation  of  India  (NPCI)  have  been  taking  up  various  initiatives  to promote digital payment transactions. These inter alia, include incentive scheme for promotion of RuPay  Debit  Cards  and  low-value  BHIM-UPI  transactions  (P2M),  Payments  Infrastructure Development Fund (PIDF) to support deployment of digital payment infrastructure in underserved regions. Besides, certain provisions / amendments have been made in the Income Tax Act, 1961, the Income Tax Rules, 1962, and the Payment and Settlement Systems Act, 2007, to incentivise digital transactions and to discourage the use of cash for high-value transactions.

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