Notes in circulation have increased since demonetisation

New Delhi: The notes in circulation (NIC) in the economy have increased to Rs 22,420 billion in November 2019, as compared to Rs 17,741 billion on November 4, 2016, just before Prime Minister Narendra Modi announced the demonetisation measure, according to latest data.

While this implies an increase in notes even after demonetisaion, Minister of State for Finance Anurag Thakur, however, said in a reply in Parliament on Monday that demonetisaion and digital cash initiatives succeeded in reducing the notes in circulation by as much as Rs 2,934.80 billion rupees.

The logic for this given by the government is that NIC had grown at an average growth rate of 14.51 per cent year-on-year from October 2014 till October 2016.

At this rate, the NIC would have increased to Rs 25,354.93 billion as on November 25, 2019.