Cash Comeback? RBI’s Latest Data Shows Currency Growth Outpacing Digital—What’s Behind the Surge?

India's monetary tempo picked up pace in early April when Reserve Bank of India said it saw a significant increase in reserve money as well as currency in circulation. Currency in circulation rose by ₹406.26 billion in the week ended April 11, 2025, to an all-time high of ₹37.81 trillion. This is a strong 5.9% year-on-year expansion—much faster than the 3.8% expansion of a year ago—indicating increased demand for cash in the economy.

 

Meanwhile, reserve money increased by 4.0% year-on-year during the week ended April 11, down from the 6.3% increase during the corresponding period last year. The numbers indicate a change in liquidity dynamics with the rate of expansion of reserve money slowing even as physical currency usage gains momentum.

 

Highlights:

These numbers highlight changing liquidity trends as the RBI deals with changing monetary conditions in FY26.

 

Sources: Business Standard, CEIC Data, Economic Times