CIC swells by 15.1 percent in fiscal year 2015

Currency in Circulation (CIC) continued to accelerate during the ongoing fiscal year mainly due to higher government borrowing. Currency in circulation accelerated by 15.1 percent during July 1, 2014 to May 8, 2015 against the growth of 14.2 percent during the same period of last fiscal year 2013-14. According to Economic Survey 2014-15, despite a persistent decline in inflation and lower credit expansion, increase in currency in circulation may be attributed to higher government borrowing from scheduled banks.
Similarly, during July to 8th May, 2014-15, currency in circulation as percent of money supply has also been increased to 23.4 percent from 23.3 percent in the same period last year. Year on Year CIC growth recorded at 13.3 percent as on May 8, 2015.