According to the finance minister, the amount of money in circulation increased from Rs 13 lakh crore in 2014 to Rs 31.33 lakh crore in March 2022. As of March 25, 2022, the currency in circulation which includes banknotes and coins—to GDP ratio was 13.7%, up from 11.6% in March 2014.
The amount of money in circulation has since increased in the economy, going from Rs 18.29 lakh crore in March 2018 to Rs 21.36 lakh crore and Rs 24.47 lakh crore in March 2019 and March 2020, respectively. It was Rs. 28.53 lakh crore and Rs. 31.33 lakh crore at the end of March 2021 and 2022, respectively.
“The government’s objective is to transition away from a cash-based economy to minimize the production and flow of black money and to boost the digital economy,” the finance minister added.
According to the minister, the goal of demonetization, which was announced on November 8, 2016, was to limit the use of high denomination banknotes for the storage of unaccounted wealth, to contain the rising level of use of fake currency for financing subversive activities like drug trafficking and terrorism, and to completely remove fake currency notes.