Bigger rise in cash in circulation in Jan-Apr than entire 2019: RBI

The rise in currency in circulatiom is perplexing when economic activity has nosedived. Generally, CIC should rise in tandem with growth in economic activities, as people need cash to transact

Rising economic uncertainties forced people to hoard more cash in the first four months of the calendar than they had done in the entire 2019, data released by the Reserve Bank of India (RBI) shows.
 

The increase in currency in circulation between January and May 1 was Rs 2.66 trillion. In comparison, it increased by Rs 2.40 trillion in the entire 2019 (January to December).
 

The rise in currency in circulation (CIC) is perplexing when economic activities have nosedived. Generally, CIC should rise in tandem with the growth in economic activities, as people need cash to transact. The demand for