Cash to GDP ratio declines to 11.11%; cash in circulation at Rs 36.88 lakh crore: RBI annual report

NEW DELHI: The value of banknotes in circulation to GDP ratio continues to see a decline as the same fell to 11.11% in FY25 compared to 11.5% in FY24, according to the RBI annual report. The value of banknotes in circulation to GDP ratio was 12.5% two years ago in FY23, indicating the success of digital payments in the country.

The value of banknotes in circulation increased by 6% in FY25 to Rs 36.88 lakh crore compared to Rs 34.78 lakh crore, as per the RBI Annual Report which was released on Thursday. According to the Reserve Bank of India’s (RBI) Annual Report for 2024–25, currency in circulation—including banknotes, coins, and digital rupee (e₹)—continued to expand, driven by demand for cash alongside growing adoption of digital alternatives.

The value and volume of banknotes in circulation grew by 6.0% and 5.6%, respectively, during 2024–25. ₹500 notes dominated the currency landscape, accounting for 40.9% of all notes by volume and 86% by value, followed by ₹10 notes in volume terms. Despite the rise in cashless payments, lower denomination notes like ₹10, ₹20, and ₹50 still made up nearly a third of all notes by volume.