Rapid strides in digital payments notwithstanding, the Indian economy will likely remain cash-dependent for many years to come, at least that’s what the automated teller machine makers and cash logistics companies are betting on.
After growing at over 20 per cent for most of 2020, currency in circulation growth fell to 8.5 per cent as of October 29 this year, shows data from the Reserve Bank of India (RBI). The reason for the steep rise in currency last year was the uncertainties related to the Coronavirus (Covid-19) pandemic, where people preferred to hoard cash to meet exigencies. The outstanding stock of currency now stands at Rs 28.5 trillion, but the pace of increase has slowed down, as the need for additional cash is less.
During demonetisation five years ago, the currency in circulation was just about Rs 18 trillion.
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