Rise in Digital Transactions Reduces Waste of Currency Notes

RBI report shows decline in cash usage as ₹8.43 billion notes withdrawn from circulation

The surge in digital transactions across India has significantly reduced the wastage of paper currency, according to new data released by the Reserve Bank of India (RBI). Between April and July 2025, the RBI withdrew a substantial number of notes from circulation, citing decreased reliance on cash.

 

The report reveals that 3.42 billion fewer notes were printed compared to last year, while 5.96 billion old notes were withdrawn from the market during the same period. This shift has been attributed to the rapid adoption of secure digital payment systems, which are increasingly replacing cash transactions in both urban and rural areas.

 

A breakdown of note circulation shows a sharp decline across denominations:

• ₹500 notes fell from 3.10 billion in 2024 to 1.81 billion in 2025.
• ₹200 notes dropped from 8.65 crore bundles to 5.62 crore bundles.
• ₹100 notes reduced from 2.27 crore to 1.07 crore bundles.
• ₹50 notes decreased from 70 crore to 65 crore bundles.

 

Experts highlight that growing comfort with UPI, e-wallets, and card payments has cut the demand for physical cash. Praveen Mishra, Secretary of All India Bank Officers’ Confederation, noted that improved payment security and consumer trust are accelerating the shift toward a cash-light economy.