Ratio of notes to GDP drops

New Delhi: Currency in circulation as percentage of GDP declined by over 1 percentage points to 10.48 per cent in the two years after demonetisation, a finance ministry official said. "In terms of GDP, notes in circulation declined from 11.55 per cent as on November 8, 2016, to 10.48 per cent as on November 8, 2018, reflecting that it has actually contributed in reducing the currency in circulation," an official said. This reflects a decline of 1 percentage point or 100 basis points.

One of the objectives of demonetisation was to reduce cash-economy and encourage digital mode of payment.