Currency in circulation rises 22% in May

New Delhi: Currency notes in circulation stood at Rs 21.71 lakh crore at May-end 2019, showing an increase of more than 22 per cent over the pre-demonetisation level.

As per a written reply given by Finance Minister Nirmala Sitharaman in the Rajya Sabha on Tuesday, the notes in circulation as on November 4, 2016 were Rs 17,74,187 cr, which have now increased to Rs 21,71,385 cr as on May 31, 2019.

In a shock decision, the government had decided to demonetised old Rs 500/1,000 notes on Nov 8, 2016. Sitharaman said the notes in circulation had grown at an average growth rate of 14.51 per cent year on year wise since October 2014.

"As actual notes in circulation on May 31, 2019 are only 21,713.85 billion, the demonetisation, followed by digitalisation and reduction of cash use in informal economy has succeeded in reducing the notes in circulation by as much as 3,408.68 billion rupees," she said.