After the rationalization of GST rates and amid festive-season demand, India's currency in circulation (CiC) climbed to record-high levels in late 2025 and early 2026. In January, it touched ₹40 trillion. So far in 2025-26, CiC has increased by ₹2.76 trillion, 3.1 times the rise seen in the same period the previous year.
India’s cash in circulation hit a record ₹40 trillion in January, even as UPI transactions scaled yet another peak. What exactly is going on? Four explanations unpack a trend that should both reassure and caution policymakers.
India's cash in circulation hit a record ₹40 trillion in January, even as UPI transactions scaled yet another peak. What exactly is going on? Four explanations unpack a trend that should both reassure and caution policymakers.