Kathmandu: Even as digital payments continue to rise, a statistic has shown that cash transactions in the market are also increasing.
While digital financial transactions are rapidly expanding, the latest fiscal year has seen growth in currency in circulation (notes in use in the market).
Cash circulation, which stood at Rs 670.20 billion in Shrawan 2081 (mid-August 2024), reached Rs 744.83 billion in Shrawan 2082 (mid-August 2024). Although circulation declined slightly in Shrawan compared to Asar 2082 (mid-July 2025), it has been steadily increasing compared to the previous fiscal year.
In Asar 2082, cash circulation was Rs 750 billion. Generally, cash circulation rises during major festivals like Dashain and Tihar, and gradually decreases afterward. The circulation usually spikes when new banknotes are exchanged during these festivals but declines once the cash returns to the banking system after the celebrations.
Cash circulation, which had reached Rs 761.31 billion in Ashoj 2081 (mid-October 2024), fell to Rs 716 billion by Poush 2081 (mid-January 2025). Thereafter, circulation began increasing again. Ahead of the festivals, cash circulation is around Rs 750 billion, but after the festivals, it is expected to cross Rs 800 billion.
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