Two years after the government withdrew 86.4 per cent of the currency in the economy, cash has come back in a big way.
The currency with the public (CwP) is 10.3 per cent higher than it was in the week preceding November 8, 2016 — from Rs 17.97 trillion to Rs 18.76 trillion.
During the subsequent weeks following demonetisation, CwP fell to a low of Rs 8.98 trillion by January 6, 2017. It was only in May this year that CwP crossed the pre-demonetisation level.
Two important factors have to be taken into account. While currency in circulation is higher