**Executive Summary:**
This document contains the response of the Minister of State in the Ministry of Finance to questions raised in Lok Sabha regarding the increase in currency circulation alongside the growth of digital transactions. It provides data on currency in circulation and UPI transactions from FY 2016-17 to FY 2023-24. It also outlines government and RBI initiatives to promote digital payments and discourage cash usage. The question was raised on August 11, 2025, and the data presented covers trends up to March 31, 2024.
**Key Points / Main Content:**
* **Currency in Circulation:**
* Currency in circulation increased from Rs. 13.35 lakh crore in March 2017 to Rs. 35.11 lakh crore by March 2024.
* RBI attributes the increase to the demand of a growing economy, influenced by GDP growth, inflation, and interest rates.
* RBI does not maintain state-wise data on currency circulation.
* **Unified Payments Interface (UPI) Transactions:**
* UPI transactions have significantly increased, with 172 billion transactions recorded in the calendar year 2024.
* UPI transaction volume increased from 92 crores in FY 2017-18 to 13,116 crores in FY 2023-24.
* **Government and RBI Initiatives:**
* No specific study has been conducted by the Government of India or RBI analyzing the trend of cash usage versus digital payment growth.
* Initiatives to promote digital payments include:
* Incentive scheme for RuPay Debit Cards and low-value BHIM-UPI transactions (P2M).
* Payments Infrastructure Development Fund (PIDF) to support digital payment infrastructure in underserved regions.
* Amendments to the Income Tax Act, 1961, the Income Tax Rules, 1962, and the Payment and Settlement Systems Act, 2007, to incentivize digital transactions and discourage high-value cash transactions.
**Impact Analysis:**
**Government of India (Ministry of Finance):**
* *Impact:* Accountable for addressing concerns raised in the Lok Sabha regarding currency circulation and digital payment trends. Responsible for implementing policies to promote a less-cash economy.
* *Action Required:* Continue existing initiatives to promote digital payments and discourage cash usage. Monitor the trends in currency circulation and digital transactions.
**Reserve Bank of India (RBI):**
* *Impact:* Responsible for managing currency circulation and providing data related to it. Plays a role in promoting digital payments and financial inclusion.
* *Action Required:* Continue to monitor factors influencing currency circulation (GDP growth, inflation, interest rates). Collaborate with the government to promote digital payment infrastructure.
**National Payments Corporation of India (NPCI):**
* *Impact:* Involved in promoting digital payment transactions.
* *Action Required:* Continue supporting and expanding the UPI infrastructure and promoting its usage.
**Citizens/Consumers:**
* *Impact:* Affected by the availability and convenience of both cash and digital payment options. Incentives and policies may influence their payment behavior.
* *Action Required:* Consider adopting digital payment methods where feasible, to benefit from incentives and contribute to a less-cash economy.
**Businesses/Merchants:**
* *Impact:* Impacted by policies related to digital payments and cash transactions. May benefit from incentives for accepting digital payments.
* *Action Required:* Adopt digital payment infrastructure to cater to customer preferences and benefit from available incentives.
Key Entities Referenced
Ministry of Finance: A department of the Government of India responsible for financial matters.
Department of Economic Affairs: A department within the Ministry of Finance, Government of India, responsible for economic policy and development.
Lok Sabha: The lower house of the Parliament of India.
Sanjay Dina Patil: Member of Parliament who raised a question in the Lok Sabha.
Unified Payments Interface: A real-time payment system in India that facilitates inter-bank transactions.
Reserve Bank of India: The central bank of India.
National Payments Corporation of India: An organization in India that operates retail payments and settlement systems.
Income Tax Act, 1961: A law in India that governs the taxation of income.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS
LOK SABHA UNSTARRED QUESTION NO. 3529
TO BE ANSWERED ON MONDAY, 11TH AUGUST 2025 / SRAVANA 20, 1947 (SAKA)
Increase in Circulation of Currency
3529. Shri Sanjay Dina Patil:
Prof. Varsha Eknath Gaikwad:
Smt. Supriya Sule:
Shri Bhaskar Murlidhar Bhagare:
Shri Mohite Patil Dhairyasheel Rajsinh:
Dr. Amol Ramsing Kolhe:
Will the Minister of FINANCE be pleased to state:
(a) whether it is a fact that the total currency in circulation has significantly increased from Rs.
13.35 lakh crore in March 2017 to Rs. 35.15 lakh crore by March 2024 and if so, the details thereof;
(b) whether the Government is aware that during the same period, digital transactions via the
Unified Payments Interface (UPI) have risen sharply with around 172 billion UPI transactions
recorded in the calendar year 2024;
(c) the reasons identified for such a steep rise in circulation of currency particularly in States like
Maharashtra;
(d) whether the Government or the Reserve Bank of India has conducted any study to analyze the
trend of increasing cash usage alongside digital payment growth and if so, the findings thereof; and
(e) the corrective steps taken by the Government to ensure a gradual transition towards a less-cash
economy while maintaining financial inclusion and economic accessibility?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (c): As per the Reserve Bank of India (RBI), the details of currency in circulation from
Financial Year 2016-17 to Financial Year 2023-24 are as follows:
Currency in circulation
As on
(₹ crore)
March 31, 2016 16,63,300
March 31, 2017 13,35,200
March 31, 2018 18,29,318
March 31, 2019 21,36,736
March 31, 2020 24,47,280
March 31, 2021 28,53,733
March 31, 2022 31,33,691
March 31, 2023 33,78,486
March 31, 2024 35,11,428The volume of UPI transactions has increased from 92 crores in FY 2017-18 to 13,116 crores in
FY 2023-24, with 172 billion UPI transactions processed in the year 2024.
As per RBI, the increase in currency in circulation is a function of demand of a growing economy,
and is driven by the growth in GDP, inflation, interest rate, etc. State-wise data on currency in
circulation is not maintained by the Reserve Bank of India (RBI).
(d) & (e): Government of India or RBI has not commissioned / conducted any study specifically
analysing the trend of cash usage vis-à-vis growth in digital payments. The Government, RBI and
the National Payments Corporation of India (NPCI) have been taking up various initiatives to
promote digital payment transactions. These inter alia, include incentive scheme for promotion of
RuPay Debit Cards and low-value BHIM-UPI transactions (P2M), Payments Infrastructure
Development Fund (PIDF) to support deployment of digital payment infrastructure in underserved
regions. Besides, certain provisions / amendments have been made in the Income Tax Act, 1961,
the Income Tax Rules, 1962, and the Payment and Settlement Systems Act, 2007, to incentivise
digital transactions and to discourage the use of cash for high-value transactions.
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