Post demonetisation, notes in circulation on rise; so are digital payments

Five years after the demonetisation, currency notes in circulation continue to rise albeit at a slower pace even as digital payments surge with more and more people embracing cashless payment modes.

Primarily, banknotes in circulation went up in the last financial year as many people opted for the precautionary holding of cash amid the Covid-19 pandemic disrupting normal lives and economic activities in varying degrees.

Official data points out a jump in digital payments through different modes, including plastic cards, net banking and Unified Payments Interface. UPI of the National Payments Corporation of India (NPCI) is fast emerging as a major medium of payment in the country. All said, currency notes in circulation are still in the upward curve.