The currency in circulation has gone up to Rs 31.33 lakh crore in March 2022, from Rs 13 lakh crore in 2014, finance minister Nirmala Sitharaman said in the Lok Sabha on Monday.

The currency in circulation, which includes bank notes and coins, to GDP ratio stood at 13.7 per cent as on March 25, 2022, up from 11.6 per cent as on March 2014.

Although the cash in circulation had dipped after demonetisation to Rs 13.35 lakh crore as of March 2017 from Rs 16.63 lakh crore as of March 2016.

However, since then cash in circulation has been rising in the economy from Rs 18.29 lakh crore in March 2018 to Rs 21.36 lakh crore and Rs 24.47 lakh crore in March 2019 and March 2020, respectively. At the end of March 2021 and 2022, it was Rs 28.53 lakh crore and Rs 31.33 lakh crore, respectively.

"The mission of the government is to move towards a less cash economy to reduce generation and circulation of black money and to promote digital economy," Sitharaman said.

The minister said the objective of demonetisation announced on November 8, 2016, was to contain fake currency notes, to limit the usage of high denomination banknotes for storage of unaccounted wealth and to contain the rising level of using fake currency for financing subversive activities like drug trafficking and terrorism.

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