Currency in circulation – News Analysis India https://newsanalysisindia.com The news you need to know, explained Mon, 16 Feb 2026 00:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 Record ₹40 Trillion Cash in India: UPI Boom Fails to Curb Currency Use https://newsanalysisindia.com/tech/record-%e2%82%b940-trillion-cash-in-india-upi-boom-fails-to-curb-currency-use/ Mon, 16 Feb 2026 00:00:00 +0000 http://newsanalysisindia.local/record-%e2%82%b940-trillion-cash-in-india-upi-boom-fails-to-curb-currency-use/ In a surprising economic twist, India’s currency circulation has climbed to an all-time high of nearly ₹40 lakh crore as of late January 2026, up 11.1 percent year-on-year compared to just 5.3 percent previously. SBI Research unveiled these figures in a detailed analysis on Monday.

Public-held currency dominates at 97.6 percent of the total, reaching about ₹39 lakh crore. Despite this, UPI has transformed payments, with monthly transaction values hitting ₹28 lakh crore—roughly 70 percent of the entire currency stock.

The cash-to-GDP ratio has accordingly dropped to 11 percent in FY26 from 14.4 percent five years ago, reflecting digital adoption’s impact. Yet, cash remains resilient.

SBI Research observes: “GDP growth now leans heavily on UPI transactions over traditional cash, even as currency volumes rise in tandem with economic expansion.”

A CRR reduction caused bankers’ deposits at the RBI to shrink by ₹1.86 lakh crore this year, tempering reserve money growth at 5.8 percent.

The banking sector’s transformation is evident: deposits grew threefold from ₹85.3 lakh crore in FY15 to ₹241.5 lakh crore in FY25, with loans surging from ₹67.4 lakh crore to ₹191.2 lakh crore. Assets relative to GDP jumped from 77 percent to 94 percent, bolstering the financial system’s health.

As India balances digital innovation with cash preferences, this dual growth trajectory highlights a maturing economy adapting to diverse payment needs.

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