India’s Currency in Circulation Up 11.9% in FY26; Sharpest Growth Since FY21

Currency in Circulation (CIC) increased 11.9% year-on-year to ₹41.68 trillion by the end of FY26, according to Reserve Bank of India data.  

This is the highest annual growth since FY21. In value terms, the increase was ₹4.44 trillion during the year. 

Highest Absolute Increase Since FY18 

The ₹4.44 trillion rise in FY26 is the largest since FY18, when CIC expanded by ₹4.94 trillion.  

That period followed the remonetisation phase after the November 2016 demonetisation, which had withdrawn a large share of high-value currency notes from the system. 

Currency with Public Remains Bulk of Cash 

Currency with public (CWP) stood at ₹40.52 trillion as of March 15, 2026. It rose by about ₹4.2 trillion during FY26.  

CWP continued to account for over 97% of total currency in circulation, indicating that most cash is held outside the banking system. 

Rural Economy Contributes to Cash Demand 

Higher cash usage during the year coincided with improved rural activity. Reports suggest that 2 consecutive years of normal monsoons supported farm incomes.  

A survey conducted in December 2025 indicated an increase in rural demand, along with improvement in household income levels. 

Digital Payments Continue to Grow 

Digital transactions recorded steady growth during the same period. UPI transactions rose 21% in value to ₹314.23 trillion in FY26.  

The number of transactions increased by 30% to 241.6 billion, showing wider adoption of digital payment systems. 

Withdrawal Trends and Other Factors 

ATM withdrawal patterns showed an upward trend in several states. Monthly withdrawals are expected to cross the long-term average of ₹2.5 lakh.  

In addition, compliance actions related to digital transactions above certain thresholds may have influenced payment choices among small businesses. 

Changes in Currency Composition 

The withdrawal of ₹2,000 banknotes, announced in May 2023, has largely been completed. Data shows that 98.45% of such notes have been returned to the banking system. 

Read More: India to Sign Free Trade Agreement with New Zealand on April 27! 

Conclusion 

Data for FY26 shows an increase in currency in circulation alongside continued growth in digital payments. Cash usage remained elevated across segments of the economy. 

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