State Bank of India (SBI) notes cash in circulation hit record Rs 40 lakh crore in January 2026.

Exam-focused facts from the 18 February 2026 current affairs briefing.

Key facts

Currency in circulation reached Rs 40 lakh crore in January 2026, 11% higher than January 2025.
UPI transactions touched Rs 28.33 lakh crore in January 2026, up over 20% year-on-year.
SBI attributes the cash spike to tax enforcement, lower interest rates boosting consumption, and high precious-metal prices prompting households to sell gold and silver.
18,000 Goods and Services Tax (GST) notices served to small vendors on UPI dealings coincided with higher ATM withdrawals in Karnataka, Tamil Nadu, West Bengal and Kerala.
Rs 2,000 notes share fell to 0.02% by volume after withdrawal of Rs 3.56 lakh crore worth from 19 May 2023; share of Rs 100, 200 and 500 notes increased.
Reserve Bank of India (RBI) directed banks in April 2025 to raise Rs 100/200 notes in ATMs and ensure 96% of ATMs dispense these denominations by end-March 2026.
Cash-to-GDP ratio declined to 11% in FY26 from 14.4% in FY21.