Business

Post demonetisation, notes in circulation on rise so are digital payments | Five years after demonetisation, the number of notes in circulation increased, digital payments also boomed

Photo: PTI

Post demonetisation, notes in circulation on rise so are digital payments

New Delhi. Five years after demonetisation, despite the rise in digital payments, the number of notes in circulation is also increasing steadily. However, the pace of growth is slow. Actually, during the Kovid-19 epidemic, people thought it better to keep cash as a precaution. Due to this, the banknotes in circulation increased during the last financial year. According to official data, there has also been a big increase in digital payments through mediums like debit/credit cards, net banking and Unified Payments Interface (UPI). UPI of the National Payments Corporation of India (NPCI) is fast emerging as a major mode of payment in the country. Despite all this, the increase of notes in circulation is slow, but continues.

Prime Minister Narendra Modi had announced the demonetisation of Rs 500 and Rs 1000 notes, which were in circulation at that time, from midnight on November 8, 2016. The main objective of this decision was to promote digital payments and curb black money. According to the latest Reserve Bank of India (RBI) data, Rs 17.74 lakh crore notes were in circulation as on November 4, 2016, which increased to Rs 29.17 lakh crore on October 29, 2021, according to the latest Reserve Bank of India (RBI) data. According to RBI, the value of notes in circulation as on October 30, 2020 was Rs 26.88 lakh crore. This increased to Rs 2,28,963 crore till October 29, 2021. On the same year-on-year basis, it increased by Rs 4,57,059 crore on October 30, 2020 and Rs 2,84,451 crore on November 1, 2019, a year ago.

Further, the value and quantity of banknotes in circulation had increased by 16.8 per cent and 7.2 per cent, respectively, during 2020-21, as against 14.7 per cent and 6.6 per cent, respectively, during 2019-20. The pandemic was the reason for the increase in the number of banknotes in circulation in the financial year 2020-21. During the pandemic, people kept cash with them as a precaution.

UPI was launched in 2016 and has seen a gradual increase in transactions through it on a monthly basis. In October 2021, transactions worth Rs 7.71 lakh crore were done through UPI in terms of value. In October, 421 crore transactions were done through UPI.

After taking out the old 500 and 1000 rupee notes, the government had issued a new 2000 rupee note. Apart from this, the government also introduced a new series of 500 rupees notes. After this, the government also issued a new series of 200 rupee notes. The combined share of Rs 500 and Rs 2000 banknotes in the total banknotes in circulation as on March 31, 2021 was 85.7 per cent. No instructions were given to RBI Note Mudran Pvt Ltd and Security Printing and Minting Corporation of India Ltd to print Rs 2000 notes during 2019-20 and 2020-21. Reserve Bank of India prints banknotes of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2000.

Read also: Yogi government gave Diwali gift, big announcement for state employees

Read also: Why India’s largest car maker is not launching electric vehicles, Maruti explains the reason

Read also: Bad news may come for you just before Diwali…

Read also: Gold became even cheaper, the fall is not stopping before Dhanteras

!function (f, b, e, v, n, t, s) {
if (f.fbq)
return;
n = f.fbq = function () {
n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);
};
if (!f._fbq)
f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
}(window, document, ‘script’, ‘//connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1684841475119151’);
fbq(‘track’, “PageView”); .

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts

Preparation to make FD attractive like mutual funds, suggestion to reduce tenure of tax free FD from 5 to 3 years Preparation to make FD attractive like mutual funds, suggestion to reduce the tenure of tax fre

Photo:INDIA TV Budget 2022 Highlights FDs become less attractive as […]

China going to lose the crown of economic superpower These figures are giving testimony to defeat | Is China going to lose the crown of economic superpower? These figures are giving testimony to the defeat of the dragon

Photo:PIXABAY Is China going to lose the crown of economic […]