Currency in circulation continues to grow at double-digit rates even as cash's share of individual transactions declines

Shirish Chandra Murmu, Deputy Governor of Reserve Bank of India (RBI) has stated that cash remains a significant mode of payment in the Indian economy, and preserving trust in it, through clean notes, secure logistics, and a currency ecosystem people can rely on, is central to preserving monetary sovereignty itself. He also highlighted the cash paradox. Currency in circulation continues to grow at double-digit rates even as cash's share of individual transactions declines, thanks to growing digital payment adoption. That combination makes future demand harder to predict, which complicates our planning for production and distribution capacity. The deputy governor also highlighted note durability and noted that we are exploring ways to extend the life of banknotes, including surface coatings on the substrate, and polymer notes for lower denominations. He also noted that the central bank is working to reduce the carbon footprint of the cash cycle.

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