Cash in circulation rises 11% to record Rs 40 lakh crore

Currency in circulation hit a record Rs 40 lakh crore, yet its share in the economy declined to 11.2% as digital payments surged. Despite increased absolute cash holdings, driven by tax enforcement and low interest rates, UPI transactions now dominate everyday economic activity, indicating cash's growing role as a store of value.

16 Feb, 05:50 — 17 Feb, 00:07

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Why this matters

The level of cash in circulation is a key economic indicator reflecting consumer behavior, economic activity, and the effectiveness of financial policies. A rise in absolute cash holdings alongside a decline in its economic share suggests a complex interplay between traditional and digital payment systems, potentially impacting financial inclusion, tax compliance, and monetary policy decisions.

The Story

What 2 sources agree on, dispute, and miss

Key claims4 unverified

Currency in circulation hit a record Rs 40 lakh crore.

unverified·Times of India

The share of currency in circulation in the economy declined to 11.2%.

unverified·Times of India

Digital payments surged.

unverified·Times of India

Increased absolute cash holdings were driven by tax enforcement.

unverified·Times of India

The Story

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Low (24/100)

2 sources— more sources would strengthen this score15/33

Spectrum spread— 1/5 buckets covered0/33

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Right2

Right (2)

Times of Indiawsj

Far R

Geographic diversity— 2 regions9/34

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wsjHigh174d ago

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Times of IndiaMostly Factual173d ago