The futility of demonetisation: Cash is back, and with a vengeance

In less than 15 months, the currency in circulation has exceeded the amount held when demonetisation was done

In November 2016, when demonetisation of Rs 500 and Rs 1,000 were done, one of the main arguments put forward was that the move will provide a big push towards cashless India. In less than 15 months, that argument seems rather weak. According to data from the Reserve Bank of India (RBI), on March 9, the currency in circulation stood at Rs 18.13 trillion – higher than Rs 17.97 trillion on November 8 – the day demonetisation was announced. The demonetisation drive sucked Rs 14.48 trillion out of the system.   

On the other hand, spends through debit and credit