At Rs 30.88 lakh crore, the currency with the public is 71.84 percent higher than the level for the fortnight that ended November 4, 2016. On November 8, 2016, Prime Minister Narendra Modi announced the decision to withdraw Rs 500 and Rs 1,000 denomination notes with the ultimate aim of reducing corruption and black money in the economy.
As per the fortnightly data on money supply released by the RBI on Friday, the currency with the public increased to Rs 30.88 lakh crore as on October 21. The central bank data for Reserve Money had put the currency in circulation at Rs 17.7 lakh crore on November 4, 2016.
Currency with the public refers to notes and coins used by people to transact, settle trades, and for buying goods and services. The figure is arrived at after deducting cash with banks from the currency in circulation. Cash usage has been steadily rising in the economy, even as newer and far more convenient digital alternatives of payments have become popular. The Covid-19 pandemic, which laid an emphasis on contactless transactions, also gave a fillip to such digital modes.