<p>The currency with the public has come down for the first time in the current financial year, on a fortnightly basis, as the economy continues to open up after the lockdown to battle the coronavirus pandemic.</p>.<p>For the fortnight ended July 31, 2020, the currency with the public came down by Rs 3,865 crore to Rs 25.75 lakh crore, according to the latest data available with the Reserve Bank of India (RBI).</p>.<p>A fortnight before this, till July 17, the currency with the public had surged consistently by Rs 2.3 lakh crore (9.8%) to Rs 25.80 lakh crore in the first three and a half months of the current financial year, from Rs 23.5 lakh crore at the end of March 2020.</p>.<p>On an aggregate basis, the growth in cash with the public, in the first four months of FY21 has been 6.13 times more than that of the corresponding period of FY20. In the previous financial year, which also saw general election (a time when cash hoarding is prominent among political circles), the cash with the public had grown by just Rs 32,290 crore (1.6%).</p>.<p>Experts suggest that dependence on neighborhood kirana shops in the lockdown had forced people to hoard cash, the need for which has subsided now.</p>.<p>“It is to be noted that during April-June, people withdrew money with the objective of spending on essential goods from neighborhood stores. In July, people have also deposited money back into the banking system (fortnightly aggregate deposit growth during July 17 to July 31 is 1%) either to avail online services (from e-commerce) or for making loan repayments,” said Sushant Hede, Associate Economist at CARE Ratings.</p>.<p>This reduction can partly be attributed to the fact that there has been a semblance of confidence in the economy and the financial system.</p>.<p>However, with the festive season commencing in August, it is probably that currency in circulation with the public may pick up again.</p>.<p>According to the RBI, currency with the public is arrived at after deducting cash with banks from total currency in circulation.</p>.<p>The currency in circulation, as on date, stands at Rs 26.92 lakh crore, up Rs 2.44 lakh (10%) from Rs 24.47 lakh crore in the current financial year.</p>
<p>The currency with the public has come down for the first time in the current financial year, on a fortnightly basis, as the economy continues to open up after the lockdown to battle the coronavirus pandemic.</p>.<p>For the fortnight ended July 31, 2020, the currency with the public came down by Rs 3,865 crore to Rs 25.75 lakh crore, according to the latest data available with the Reserve Bank of India (RBI).</p>.<p>A fortnight before this, till July 17, the currency with the public had surged consistently by Rs 2.3 lakh crore (9.8%) to Rs 25.80 lakh crore in the first three and a half months of the current financial year, from Rs 23.5 lakh crore at the end of March 2020.</p>.<p>On an aggregate basis, the growth in cash with the public, in the first four months of FY21 has been 6.13 times more than that of the corresponding period of FY20. In the previous financial year, which also saw general election (a time when cash hoarding is prominent among political circles), the cash with the public had grown by just Rs 32,290 crore (1.6%).</p>.<p>Experts suggest that dependence on neighborhood kirana shops in the lockdown had forced people to hoard cash, the need for which has subsided now.</p>.<p>“It is to be noted that during April-June, people withdrew money with the objective of spending on essential goods from neighborhood stores. In July, people have also deposited money back into the banking system (fortnightly aggregate deposit growth during July 17 to July 31 is 1%) either to avail online services (from e-commerce) or for making loan repayments,” said Sushant Hede, Associate Economist at CARE Ratings.</p>.<p>This reduction can partly be attributed to the fact that there has been a semblance of confidence in the economy and the financial system.</p>.<p>However, with the festive season commencing in August, it is probably that currency in circulation with the public may pick up again.</p>.<p>According to the RBI, currency with the public is arrived at after deducting cash with banks from total currency in circulation.</p>.<p>The currency in circulation, as on date, stands at Rs 26.92 lakh crore, up Rs 2.44 lakh (10%) from Rs 24.47 lakh crore in the current financial year.</p>
