After 9 weeks currency in circulation shows rise

Going by the pace, almost 80 per cent of the demonetised currency is expected to be replaced by end-February. 

For the first time after the decision announced on November 8 to demonetise high value notes, currency in circulation has showed net rise in a week.

In this case, the week ended Friday, January 13, with RBI pumping more and more high of value notes back in the system.

Going by the pace, almost 80 per cent of the demonetised currency is expected to be replaced by end-February. 

On the night of November 8, the government cancelled Rs 500 and Rs 1,000 notes as legal tender, removing about 86 per cent of whatever was in circulation.

This rise and the trend it indicates might nudge people to resume spending. And, temper the surge till now in payments made through digital banking, analysts said.

Currency in circulation fell continuously for nine weeks as people deposited or exchanged old high value notes at bank branches from November 10 (banks were closed on November 9).

According to RBI, the currency in circulation rose by Rs 52,783 crore (5.9 per cent) in the week ended January 13. The total in circulation stood at Rs 9,50,803 crore, up from Rs 8,98,020 crore a week before.   

In a week prior to the decision (ended November 4), currency volumes had grown by Rs 20,100 crore (1.1 per cent) to Rs 17,97,400 crore. The amount in circulation had dipped by Rs 9,700 crore to Rs 17,87,700 crore in the week ended November 11.