Archive · 19 May 2025
Currency in Circulation Grows, Reflecting Rural Demand and Farm Prices
Imagine money as flowing in a river.
The article talks about how much money is flowing around in India, called 'currency in circulation'.
It's like counting how much cash is out there.
The amount of money is growing, especially because people in the countryside are buying more things due to better farm prices.
Even though more people use digital payments now, cash is still used a lot.
Between 2014 and 2024, the amount of cash doubled while ATMs and bank branches increased, showing that cash remains a major part of how people spend money in India.
Currency in circulation increased by 2.4% year-to-date up to May 2.
Total currency in circulation is at Rs 38.1 lakh crore.
The growth in currency is attributed to strong rural demand supported by farmgate prices.
Cash accounts for 60% of consumer expenditure as of March 2024.
Between 2014 and 2024, currency in circulation more than doubled.
- Who
- The Reserve Bank of India (RBI) reported the data.
- What
- Currency in circulation grew by 2.4% year to date up to May 2.
- When
- The data is as of May 2, with trends from the end of FY25.
- Where
- India
- Why
- Due to increased rural demand, supported by strong agricultural output and farmgate prices.
- Currency in Circulation (May 2)
- Rs 38.1 lakh crore
- Year-to-date growth
- 2.4%
- CIC as % of GDP
- 11.5%
- FY25 currency leakage
- Rs 2.09 lakh crore
- FY26 expected leakage
- Rs 2.2 lakh crore
- Cash share of consumer expenditure (March 2024)
- 60%