RBI DG–Cash demand remains strong because [a] in rural & semi urban economy reliance on cash [b] senior citizens prefer cash  [c] preference of  small businesses for cash [2] Added to this– is the core  responsibility of RBI to maintain public confidence in cash [3] Country has around 176 billion banknotes in circulation- RBI withdraws about 21 billion soiled notes every year & produces 28-30 billion bank notes annually- Courtesy BL