Mumbai, February 16: India’s currency in circulation has soared to a staggering ₹40 lakh crore by the end of January 2026, marking an annual growth of 11.1 percent—more than double the 5.3 percent recorded in the same period last year. This revelation comes from a comprehensive report released on Monday by SBI Research.
The report highlights that currency held by the public now constitutes 97.6 percent of the total circulation, amounting to nearly ₹39 lakh crore. This surge persists even as digital payments, particularly via Unified Payments Interface (UPI), have revolutionized transactions across the nation.
UPI transactions alone reached a monthly value of approximately ₹28 lakh crore, equivalent to 70 percent of the country’s total currency stock. This underscores the massive shift towards digital payments, with the cash-to-GDP ratio plummeting to 11 percent in FY26 from 14.4 percent in FY21.
“While currency and GDP growth trends align, much of the GDP expansion is now fueled by UPI rather than physical cash,” the report notes. This digital momentum has significantly reduced reliance on notes and coins.
However, a cut in the Cash Reserve Ratio (CRR) led to a ₹1.86 lakh crore decline in bankers’ deposits with the RBI this fiscal year, slowing reserve money growth to 5.8 percent.
Over the decade from FY15 to FY25, bank deposits tripled from ₹85.3 lakh crore to ₹241.5 lakh crore, while loans expanded from ₹67.4 lakh crore to ₹191.2 lakh crore. Bank assets as a percentage of GDP rose from 77 percent to 94 percent, signaling robust financial strengthening and improved credit intermediation.
This paradox of rising cash alongside booming digital payments paints a nuanced picture of India’s evolving economy, where both coexist to drive growth.