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 Shri Pankaj Chaudhary in a written reply to a question in Lok Sabha today.

Giving more details as per weekly statistical supplement of Reserve Bank of India (RBI), the Minister stated that the Notes in Circulation (NIC) were ₹ 17,74,187 crore as on 4^th November, 2016 and ₹ 27,80,045 crore as on 29^th 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.

Digital payment ecosystem expansion drives reduced cash dependence and increased electronic payment volumes nationwide. Policy endorses transition to a less cash economy via a strengthened digital payment ecosystem, with digital payment volumes increasing from 1459.02 crore in FY 2017-18 to 4371.18 crore in FY 2020-21. Notes in Circulation were Rs. 17,74,187 crore on 4 November 2016 and Rs. 27,80,045 crore on 29 January 2021. The level of bank notes is stated to depend on GDP growth, inflation, replacement of soiled notes, and growth in non-cash payment modes.