It is the policy of the Government to move towards less cash economy and a digital payment ecosystem.
This was stated by Union Minister of State for Finance Pankaj Chaudhary in a written reply to a question in Lok Sabha.
Giving more details as per weekly statistical supplement of Reserve Bank of India (RBI), the Minister stated that the Notes in Circulation (NIC) were Rs 17,74,187 crore as on 4th November, 2016 and Rs 27,80,045 crore as on 29th January, 2021.
On digital payment ecosystem, the Minister stated that the total volumes of digital payments have also increased from 1459.02 crore in FY 2017-18 to 4371.18 crore in FY 2020-21 due to sustained efforts towards digitalisation.
The Minister further stated that the quantum of bank notes in the economy broadly depends on the requirement for meeting the demand for bank notes due to GDP growth, inflation, and replacement of soiled bank notes and growth in non-cash modes of payment.