The time taken from printing currency notes to transporting it to distribution centers has come down from 21 days to just 6 days.
The government is striving to improve it further over the next few weeks, said The Times of India report.
All possible modes of transport including helicopters and Indian Air Force planes are moving the cash quickly.
With availability of cash improving in urban areas, the government is concentrating on rural areas.
The report, quoting senior government sources, said the level of economic activity should climb back to normal levels by January 15.
Any gains accrued due to demonetisation will be used for recapitalisation of banks, building infrastructure and purchasing advanced weapons systems for the armed forces. The government is also expecting higher dividend from the RBI as significant portion of the notes may not come back, reducing the liability of RBI.
The swelling of deposits with banks is also expected to translate into better lending capacity for banks.