5 years of demonetisation: Notes increased again in the market, then 17.74 lakh crore notes were in circulation, now increased to Rs 29.17 lakh crore

 New Delhi, PTI. Prime Minister Narendra Modi announced the demonetisation of Rs 500 and Rs 1000 notes from midnight on November 8, 2016. Five years after demonetisation, despite the rise in digital payments, the number of notes in circulation is also increasing steadily. However, the pace of growth is slow. According to official data, there has also been a big increase in digital payments through mediums like debit/credit cards, net banking and Unified Payments Interface (UPI).

Actually, during the Kovid-19 epidemic, people thought it better to keep cash as a precaution. Due to this, the banknotes in circulation increased during the last financial year. UPI of National Payments Corporation of India (NPCI) is fast emerging as a major mode of payment in the country. Despite all this, the increase of notes in circulation is slow, but continues. The main objective of demonetisation was to promote digital payments and curb black money.

According to the latest Reserve Bank of India (RBI) data, notes in circulation worth Rs 17.74 lakh crore as on November 4, 2016, increased to Rs 29.17 lakh crore as on October 29, 2021. According to RBI, the value of notes in circulation as on October 30, 2020 was Rs 26.88 lakh crore. This increased to Rs 2,28,963 crore till October 29, 2021. On the same year-on-year basis, it increased by Rs 4,57,059 crore on October 30, 2020 and Rs 2,84,451 crore on November 1, 2019, a year ago.

Further, the value and quantity of banknotes in circulation had increased by 16.8 per cent and 7.2 per cent, respectively, during 2020-21, as against 14.7 per cent and 6.6 per cent, respectively, during 2019-20. The pandemic was the reason for the increase in the number of banknotes in circulation in the financial year 2020-21. People kept their cash as a precaution during the pandemic.

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