The Currency in Circulation (CIC) grew by around 13 pc in the first nine months of the current fiscal as people preferred holding on to cash as a precautionary measure amid the uncertainty caused due to the COVID-19 pandemic. CIC grew by Rs 3,23,003 crore, or 13.2 pc, to Rs 27,70,315 crore as on January 1, 2021 from Rs 24,47,312 crore as on March 31, 2020, according to recent data released by the Reserve Bank of India (RBI).

In the April-December period of FY2020, it had grown by nearly 6 pc. According to Care Ratings Chief Economist Madan Sabnavis, the growth in currency in circulation so far in the current fiscal has been high as people were accumulating more cash to meet any exigency during the lockdown.

The RBI in its annual report for 2019-20, released in August 2020, had also mentioned that demand for currency started to increase in the wake of heightened uncertainty caused by the COVID-19 pandemic. The central bank also took a series of measures in order to meet the enhanced demand. During the calendar year 2020, CIC grew 22.1 pc, or Rs 5,01,405 crore, to Rs 27,70,315 crore as on January 1, 2021. CIC includes banknotes and coins. At present, RBI issues notes in denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500 and Rs 2,000. Coins in circulation comprise those of 50 paise and Re 1, Rs 2, Rs 5, Rs 10 denominations, and the recently launched coin of Rs 20 denomination.

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