Foreign money in circulation rises regardless of Rs 2,ooo word withdrawal – Occasions of India

MUMBAI: Regardless of the withdrawal of Rs 2,000 banknotes, the general worth of the forex in circulation elevated from Rs 33.5 lakh crore on the finish of March 2023 to Rs 34.8 lakh crore a yr later – rising by Rs 1.3 lakh crore in FY24. Nonetheless, the speed of progress has been the slowest since 2018.
The share of forex in circulation as a proportion of GDP has declined in FY24 as a result of the 4 per cent improve in CIC is slower than the projected progress in GDP.Final yr, CIC noticed a year-on-year progress of seven per cent, whereas there was an almost 10 per cent progress within the yr. earlier than owing to a touch to money in the course of the pandemic.
Newest information reveals that in the course of the week ended April 5, forex in circulation rose 0.5 per cent to Rs 35.3 lakh crore.
In keeping with rbi information on the worth of banknotes in circulation, the elevated launch of Rs 500 notes has greater than compensated for the withdrawal of Rs 2,000 notes, RBI had introduced their withdrawal on Might 19, 2023.
As of March 2024, the worth of Rs 2,000 notes in circulation was solely Rs 8,202 crore, in comparison with Rs 3.6 lakh crore a yr in the past. Nonetheless, the worth of Rs 500 notes has risen to Rs 30.1 lakh crore from 25.8 lakh crore a yr earlier. The Rs 500 notes now account for 86.5 per cent of all CIC (in worth phrases).
The worth of Rs 100 and Rs 200 financial institution notes additionally elevated in the course of the yr to Rs 2.1 lakh crore and Rs 1.5 lakh crore, respectively, from Rs 1.8 lakh crore and Rs 1.3 lakh crore final yr. Some bankers anticipate CIC to extend additional in the course of the elections.