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7.3% and Rising—Is India’s Cash Pulse Hinting at a Bigger Economic Shift?


Updated: June 18, 2025 17:20

Image Source: KNN India
The Reserve Bank of India (RBI) has released its latest monetary statistics for the week ended June 13, 2025, revealing a notable uptick in currency in circulation (CiC) and a moderated pace in reserve money growth, reflecting evolving liquidity dynamics in the economy.
 
Key Highlights:
 
- Currency in Circulation (CiC): CiC grew 7.3% year-on-year, up from 5.9% growth in the same period last year. On a weekly basis, it rose 0.4%, reaching ₹38.51 lakh crore.
- Reserve Money: Reserve money expanded 4.8% YoY, a slowdown compared to 8.1% growth a year ago. Weekly reserve money contracted 0.1%, standing at ₹49.56 lakh crore.
- Fiscal Year Trends: In FY25 so far, CiC has increased 3.4%, while reserve money has grown 2.6%, indicating a measured liquidity expansion.
- Digital Shift Continues: The RBI’s annual report notes a decline in the cash-to-GDP ratio to 11.2%, down from 11.7% in FY24, driven by rising digital payments and CBDC adoption.
- Currency Printing Costs: Expenditure on currency printing surged 25% YoY to ₹6,372.8 crore, reflecting higher demand and operational costs.
 
Outlook:
 
The data suggests a gradual normalization of liquidity, with physical currency demand stabilizing amid digital alternatives. Analysts expect the RBI to maintain a balanced monetary stance, especially as inflation moderates and credit demand remains steady.
 
Source: Business Standard, RBI Annual Report 2024–25, AffairsClou

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