Ten Years After Demonetisation India Sees Significant Rise In Currency Circulation

A decade after the 2016 demonetisation, India continues to experience a unique <b>cash paradox</b> where physical currency remains vital despite the rapid expansion of digital payments. While UPI has transformed daily transactions, the demand for physical notes has not diminished as expected. Official data shows currency in circulation rose from Rs 17.77 lakh crore in November 2016 to Rs 43.16 lakh crore by October 2026, marking a 143 per cent increase. Meanwhile, UPI processed 25.46 billion transactions worth Rs 31.53 lakh crore in October 2026 alone. The RBI's 2026 annual report confirms that both the <b>value and volume</b> of banknotes in circulation grew significantly during the last financial year. This trend indicates that digital adoption and cash usage are currently coexisting within the Indian economy.