Demonetisation impact: People's currency holding habits impacted, says RBI

One year after the note ban, there is a significant drop in demand for currency due to a sharp rise in payments through digital means, digitisation, and changes in currency holding habits, according to a study by the Reserve Bank of India (RBI).

As on October 27, the total currency in circulation (CIC) was lower by 8 per cent on a year-on-year basis, as against an increase of 17.2 per cent last year. It is estimated that the CIC declined by around Rs 9 lakh crore between November 4, 2016 and January 6, 2017.

In an article titled “Impact of