{"id":127220,"date":"2022-12-22T12:13:02","date_gmt":"2022-12-22T06:43:02","guid":{"rendered":"https:\/\/www.gkseries.com\/blog\/?p=127220"},"modified":"2022-12-22T12:13:04","modified_gmt":"2022-12-22T06:43:04","slug":"note-in-circulation-rise-8-annually-to-rs-32-lakh-crore-fm","status":"publish","type":"post","link":"https:\/\/www.gkseries.com\/blog\/note-in-circulation-rise-8-annually-to-rs-32-lakh-crore-fm\/","title":{"rendered":"Note in Circulation Rise 8% Annually to Rs 32 Lakh Crore: FM"},"content":{"rendered":"\n<p><strong>Note in Circulation Rise 8% Annually to Rs 32 Lakh Crore:<\/strong> The note in circulation (NiC), according to Finance Minister Nirmala Sitharaman, increased by 7.98% annually to reach Rs 31.92 lakh crore as of December 2, 2022.\u00a0The demand for currency depends upon several macroeconomic factors, including economic growth and level of interest rates, she said.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.gkseries.com\/blog\/category\/daily-quiz\/daily-quiz-december-2022\/\" target=\"_blank\" rel=\"noreferrer noopener\">December 2022 Current Affairs Quiz<\/a><\/strong><\/p>\n\n\n\n<p><strong>More About This: Cash Is Still King:<\/strong><\/p>\n\n\n\n<p>The amount of money in circulation has increased to a record high of Rs 32 lakh crore six years after demonetisation, demonstrating that cash is still Indians&#8217; preferred method of payment. Compared with the pre-demonetisation period, Since November 4, 2016, when it was Rs 17 lakh crore, it has grown by a staggering 72%. The demonetisation (of Rs 500 and Rs 1,000 notes that ceased to be legal tender) was announced by&nbsp;Prime Minister Narendra Modi&nbsp;on November 8, 2016, with the aim of reducing the circulation of black money in the economy, among other objectives.<\/p>\n\n\n\n<p><strong>Key Points Regarding This:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>While comparing absolute numbers, it is important to compare them with the GDP, as it is the key indicator of measuring cash in the system in tune with economic growth. A back-of-the-envelope calculation shows that at present,&nbsp;currency in circulation is at 13 per cent of GDP compared to 14 per cent last year.<\/li>\n\n\n\n<li>\u2022 The Reserve Bank of India (RBI) injected money into the system following the Covid-19 pandemic, bringing the figure down to 13% in 2020. Incidentally, the cash in circulation as a percentage of GDP was at 12 per cent in 2016.<\/li>\n\n\n\n<li>While the cash in circulation has gone up, digital payments have also been on the rise. According to data from the banking regulator, the&nbsp;RBI-Digital Payments Index, which tracks digital payments, rose 29.08 per cent to hit an all-time high of 349.3 points in March 2022 from 270.59 points a year ago.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Note in Circulation Rise 8% Annually to Rs 32 Lakh Crore: The note in circulation (NiC), according to Finance Minister Nirmala Sitharaman, increased by 7.98% annually to reach Rs 31.92 lakh crore as of December 2, 2022.\u00a0The demand for currency depends upon several macroeconomic factors, including economic growth and level of interest rates, she said. [&hellip;]<\/p>\n","protected":false},"author":894,"featured_media":127221,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4992],"tags":[82],"offerexpiration":[],"class_list":["post-127220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-december-2022","tag-economy-current-affairs"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/127220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/894"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=127220"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/127220\/revisions"}],"predecessor-version":[{"id":127222,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/127220\/revisions\/127222"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/127221"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=127220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=127220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=127220"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/offerexpiration?post=127220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}