Ten Years After Demonetisation, Data Shows Cash Use and Fake Notes Persist

Ten years after the sudden ban on high-value bank notes, official data reveals that the policy has not reduced the total amount of cash people use. Reserve Bank of India figures show that physical cash in circulation remains high, while the discovery of fake currency, especially ₹500 notes, has actually gone up.

Growth of Digital Pay

At the same time, digital payments have expanded rapidly across the country. The total value of transactions made through the Unified Payments Interface has grown steadily every single year. This digital growth continues even when calculated as a share of the nation's total Gross Domestic Product.

Context

Demonetisation took place a decade ago when the government withdrew 86 percent of the country's currency overnight to curb black money and corruption. While digital transactions have surged in the years since, physical cash remains a central part of everyday Indian commerce.