The decline in printing costs comes even as the total value of banknotes in circulation rose sharply to Rs 41.23 lakh crore at the end of March 2026 from Rs 36.86 lakh crore a year earlier, an increase of nearly 11.8%. This suggests that RBI printed fewer but higher denomination notes to meet the growing currency requirement.
The Rs 500 note continues to dominate, accounting for 85.5% of the total value of notes in circulation at Rs 35.27 lakh crore, with 705.48 crore notes outstanding, representing a 41.2% volume share.
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The currency-to-GDP ratio rose to 12.1% at the end of March 2026 from 11.7% at the end of March 2025, reflecting the continued preference for cash in the Indian economy despite the rapid growth of digital payments. The ratio remains well below its post-demonetisation peak of 14.4% recorded in March 2021, a level reached as remonetisation flooded the system with fresh currency following the November 2016 note ban. The data comes close to the tenth anniversary of demonetisation.
The credit-to-GDP ratio also hit a new high of 61.8% at the end of March 2026, up sharply from 57.4% a year earlier, reflecting the strong expansion in bank lending even as the broader economy maintains its growth momentum.
On the digital currency front, the value of e-rupee in circulation declined to Rs 771.7 crore as of March 31, 2026, from Rs 1,016.5 crore a year earlier, a 24.1% drop that suggests the RBI’s central bank digital currency pilot is yet to gain meaningful traction among users despite ongoing efforts to expand its reach.Also Read: RBI highlights strong banking sector health, says lenders can withstand severe shocks
Outlining its agenda for the current fiscal year, RBI said its currency management agenda for 2026-27 will focus on strengthening the integrity of Indian banknotes through new and upgraded security features, improving the substrate of banknotes for enhanced durability under its Utkarsh 2029 programme, augmenting processing capacity, and opening two new Issue Offices.
The central bank said maintaining self-sufficiency in banknote production through indigenisation, enhancing the lifespan and security of banknote design, and improving the quality of notes in circulation will remain its priority areas.