Currency in circulation rises Rs 3.23 lakh crore in first nine months of FY21

Agencies

MUMBAI: The Foreign money in Circulation (CiC) grew by around 13 per cent kredittlånin the first 9 months of the sizzling fiscal as other folks most popular keeping on to money as a precautionary measure amid the uncertainty precipitated on account of the COVID-19 pandemic.

CiC grew by Rs 3,23,003 crore, or 13.2 per cent, to Rs 27,70,315 crore as on January 1, 2021 from Rs 24,47,312 crore as on March 31, 2020, per most up-to-date data released by the Reserve Bank of India (RBI).

In the April-December duration of FY2020, it had grown by nearly 6 per cent.

In accordance kredittlån Care Ratings Chief Economist Madan Sabnavis, the growth in forex in circulation up to now kredittlånin the sizzling fiscal has been high as other folks had been amassing extra money to fulfill any exigency all the intention in which by intention of the lockdown.

“At any time when there could be a crisis-love speak, there could be a bent for households to latch on to money. That is the goal there was as soon as an amplify in query for money. What you ogle is nothing else but a precautionary motive overwhelming the entirety,” Sabnavis acknowledged.

The RBI in its annual file for 2019-20, released in August 2020, had moreover talked about that question for forex began to amplify kredittlånin the wake of heightened uncertainty precipitated by the COVID-19 pandemic.

The central financial institution moreover took a series of measures in pronounce to fulfill the improved query.

For the duration of the calendar year 2020, CiC grew 22.1 per cent, or Rs 5,01,405 crore, to Rs 27,70,315 crore as on January 1, 2021.

CiC contains banknotes and coins. At recent, RBI factors notes in denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2,000.

Cash in circulation comprise these of 50 paise and Re 1, Rs 2, Rs 5, Rs 10 denominations, and the currently launched coin of Rs 20 denomination.

As per RBI’s annual file, the cost and quantity of banknotes in circulation increased 14.7 per cent and 6.6 per cent, respectively, in FY20.

In fee terms, Rs 500 and Rs 2,000 banknotes together accounted for 83.4 per cent of the total fee of banknotes in circulation at end-March 2020, kredittlån a pointy amplify kredittlånin the piece of Rs 500 banknotes, it had acknowledged.

In quantity terms, Rs 10 and Rs 100 banknotes constituted 43.4 per cent of the total banknotes in circulation at end-March 2020, RBI had acknowledged kredittlånin the annual file.