RBI plans to move from wholesale cash cycle to a retail-based model

The plan will increase the velocity of cash circulation, which will boost economic activity, industry sources said

The Reserve Bank of India (RBI) is in discussions with Cash Logistics Companies (CLCs) on a road map for changing the cash management cycle of the economy, in the coming years. The plan to move from a wholesale cash cycle, in place at present, to a retail-based model will increase the velocity of cash circulation, which will boost economic activity, industry sources said.

The chart depicts a typical wholesale cash cycle, where CLCs help banks distribute the cash they receive from the RBI’s printing press(es) and mint(s) to their branches and ATM networks.

After the cash