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Cash in circulation fell post note ban: FM
Why is it in the news?
- According to Finance Minister, increased digital transactions led to a reduction in currency in circulation by ₹3.4 lakh crore.
- Demonetisation along with reduced cash usage in the informal economy further helped in the direction.
More in the news
- Replying to a question in the Rajya Sabha, the minister said that the level of currency in circulation as of May 31, 2019, was significantly lower than what it would have been if demonetisation had not happened.
- According to the data provided, the value of notes in circulation on November 4, 2016, (four days before demonetisation was announced) stood at ₹17.74 lakh crore, which has now increased to ₹21.71 lakh crore as of May 31, 2019.
- However, the Minister said that the notes in circulation had been growing at an average annual growth rate of 14.51% since October 2014.
- The Minister also said that demonetisation led to a “significant positive impact on most theatres of violence” in the country.
- Illegally held cash formed a major chunk of terrorfunding, and that the note ban rendered the cash held with terrorists worthless.
Source
The Hindu.