RBI Reports Surge in Currency Circulation Amid Steady Reserve Money Growth

The Reserve Bank of India released its weekly statistical supplement, highlighting a sharp weekly increase in currency in circulation by ₹203.96 billion, reaching ₹39.12 trillion as of December 12, 2025. This reflects heightened cash usage during the festive and year-end period, alongside digital payment trends.

Reserve money grew 1.6% year-on-year, moderating from 6.3% a year ago, as the central bank balances liquidity amid economic expansion. The faster currency growth Y/Y at 9.5% underscores persistent demand for physical cash in rural and retail transactions despite UPI dominance.

These metrics offer key insights into liquidity conditions ahead of potential policy adjustments.

Key Highlights:

Currency in Circulation: Up ₹203.96 bn to ₹39.12 trillion (week to Dec 12).

Y/Y Currency Growth: 9.5% vs 6.1% last year.

Reserve Money Y/Y: 1.6% growth vs 6.3% year ago.

Implications: Strong cash demand amid moderating broader money supply.

Context: Year-end liquidity and transaction surge evident.

Source: Reserve Bank of India Weekly Statistical Supplement, December 17, 2025.