Decoded: Why higher circulation of currency is normal in abnormal times

In a country like India, where inflation is a curse word, currency in circulation has to be curtailed to control inflation

In India, cash in circulation continues to remain high. While the currency with the public has expanded substantially, there appears to be some moderation in the pace of growth. As on April 9, year-to-date, the currency with the public rose by 16.7 per cent. In mid-February, it was rising by 21 per cent. Anything above 12-13 per cent growth in currency with the public is considered abnormal, but then this situation also dep­ends on the circumstances.

So, is this an abnormal growth?

When one adjusts the present currency with the public (Rs 27.9 trillion) with the gross domestic product (GDP), the growth