New Delhi: The circulation of currency notes in the country has increased significantly. During the first nine months of the current financial year, the value of total currency notes in circulation increased by 13 percent. The data is based on figures released by the Reserve Bank. This situation was created because individuals want to hold money as a precautionary measure in the midst of uncertainty caused by the COVID-19 epidemic.
According to the latest data released by the Reserve Bank of India, the value of currency notes in circulation increased by Rs 2,23,003 crore or 13.2 percent to Rs 27,70,315 crore as on January 1, 2021 from Rs 24,47,312 crore as on March 31, 2020. During the April-December period of the 2020 financial year, the growth was 6 percent. This is due to the high level of currency in circulation in the current financial year as people are raising more money to meet the needs of lockdown time and subsequent days. The Reserve Bank of India (RBI) said in its 2019-20 annual report released in August 2020 that the demand for the currency had begun to rise in the wake of high uncertainty caused by the COVID-19 epidemic.