Notes in Circulation

Finance Minister Nirmala Sitharaman on Monday said note in circulation (NIC) has witnessed an annual growth of 7.98% to 31.92 lakh crore as of December 2, 2022. The demand for currency depends upon sever- al macroeconomic factors, including economic growth and level of interest rates, she said in a reply to a query in the Lok Sabha.

The quantum of cash or banknotes in the economy depends on the requirement for meeting the demand for banknotes due to GDP growth, inflation, replacement of soiled banknotes and growth in non-cash modes of payment. She stressed that the mission of the government is to move towards a less cash economy to reduce the generation and circulation of black money and to promote the digital economy. Both the government and RBI have taken measures to promote a less cash economy and encourage digital payment, she said. S-ET

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