The growth in currency in circulation (CiC) in India has reached its highest level in five years, supported by substantial inflows through Foreign Currency Non-Resident (Bank), or FCNR(B), deposits. The increase has also contributed to a strong expansion in reserve money, according to the Reserve Bank of India's (RBI's) latest State of the Economy report. Data released by the central bank showed that currency in circulation stood at Rs 43.46 trillion as of October 15, 2026, marking a year-on-year increase of 13.5 per cent. Reserve money, meanwhile, rose 10.3 per cent annually to Rs 53.24 trillion.
\n\nThe report, prepared by RBI staff members, highlighted the acceleration in currency circulation and its contribution to the growth of reserve money, adjusted for changes in the cash reserve ratio (CRR).
\n\n“Reserve money (adjusted for CRR) expanded at a robust pace with growth in currency in circulation recording its highest print over the past five years as on September 30, 2026,” the report said.
\n\nThe RBI's special foreign exchange swap facility, introduced on June 8, played a significant role in attracting foreign currency deposits. The facility covered FCNR(B) deposits, external commercial borrowings and overseas foreign-currency borrowings.
\n\nBanks had mobilised $133 billion through FCNR(B) deposits…
Original source: https://www.timesnownews.com/business-economy
