Why pace of rise in currency circulation has dipped in India?
India’s currency in circulation has increased by only around 500 billion rupees in the first four months of this financial year that began in April, which is nearly half the pace of the same period a year ago. Economic activity is completely back to pre-pandemic levels, and hence there is hardly any need for panic-driven cash withdrawals, a trader with a state-run bank said. India’s banking system liquidity surplus remains around two trillion rupees, and Kotak Mahindra Bank expects the surplus to ease to around 1.50 trillion by end of this week.
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