As per the latest data released by the Reserve Bank of India (RBI), the cash in circulation in the economy is presently 26 percent less than what it was before the decision to demonetise Rs 500 and Rs 1000 notes.
The Economic Times reports that while the total currency in circulation before demonetisation was Rs 17.97 lakh crore, the total cash in the system as of March 31 is Rs 13.32 lakh crore.
As for the weekly cash withdrawals, while the RBI lifted all restrictions on withdrawals from banks and ATMs on March 13, there has been a significant drop in withdrawals till March 31.
While the reduction in cash withdrawals has been attributed to digital modes of payments, Business Standard says that by February, the remonetization process gained momentum by February thanks to which there was more cash in India’s economy.
(Feature image source: Reuters)