Currency notes in circulation stood at Rs 21.71 trillion at May-end 2019, showing an increase of more than 22 per cent over the pre-demonetisation level.
According to a written reply given by Finance Minister Nirmala Sitharaman in the Rajya Sabha on Tuesday, the notes in circulation as of November 4, 2016, were Rs 17,74,187 crore, which have now increased to Rs 21,71,385 crore as of May 31, 2019. The government had decided to demonetise old Rs 500 and Rs 1,000 notes on November 8, 2016.
Sitharaman said the notes in circulation had grown at an average growth rate of 14.51 per cent year-on-year since October 2014.
"As actual notes in circulation on May 31, 2019 are only Rs 21,713.85 billion, the demonetisation, followed by digitalisation and reduction of cash use in informal economy has succeeded in reducing the notes in circulation by as much as Rs 3,408.68 billion," she said.
The demonetisation, the minister said, was done with a view to eliminate black money, curb fake currency and thereby to create deterrence to funding of terror and left-wing extremism, facilitate transition of India's non-formal economy into a formal economy and to give boost to digitalisation, among other objectives.