Rupee Banknotes Surpass Dollar and Euro in Circulation

The Reserve Bank of India (RBI) has released data showing that Indian rupee banknotes have surpassed both US dollar and euro notes in circulation. RBI Deputy Governor Shirish Chandra Murmu stated that as of August 7, there are 176 billion rupee banknotes in circulation, compared to approximately 56 billion US dollar bills and around 30 billion euro banknotes.

Murmu attributed the high number of rupee banknotes to factors such as GDP growth, inflation, and interest rates. He noted that India's denomination mix is skewed towards lower-value notes, necessitating a higher number of pieces for transactions of equivalent value.

The RBI has implemented measures to manage the cost of currency, including extending the lifespan of banknotes by utilizing polymer materials. The central bank produces between 28 billion and 30 billion banknotes annually across six denominations, while disposing of about 21 billion pieces each year.