New Delhi, Feb. 16 -- Cash use in India remains strong and currency in circulation has reached a record high despite the rapid rise in digital payments, mainly due to higher consumption, lower interest rates, and the replacement of Rs 2000 notes, according to a report by State Bank of India (SBI).

The report said currency in circulation (CiC) touched a record level of around Rs 40 lakh crore for the month ended January 2026, registering a year-on-year growth of 11.1 per cent, compared to 5.3 per cent growth in the same period last year.

On an incremental basis, CiC increased by Rs 2.76 lakh crore so far this year, compared to Rs 88,517 crore in the same period last year, showing a significant rise.

According to the report, higher deman...