India's currency in circulation growth slowed to 3.7% in February due to RBI's withdrawal of Rs 2,000 banknotes.

India's currency in circulation growth slowed to 3.7% in February due to the Reserve Bank of India's (RBI) withdrawal of Rs 2,000 banknotes. Nearly 97.5% of Rs 2,000 notes were returned to the banking system by January 31, leading to a double-digit increase in commercial banks' deposits and a decelerated growth of Reserve Money to 5.8% from 11.2% a year ago. The total value of Rs 2,000 banknotes in circulation was Rs 3.56 lakh crore at the time of the withdrawal announcement on May 19, 2023.