Cash logistics business is on the cusp of change as digital payments soar

Deregulation of the currency chest system will act as the game changer

Consider this: The currency-in-circulation (CiC) in the country is now a tad over Rs 27 trillion, up by almost 22 per cent from a year ago, despite galloping digital payments. And if you were to allow for the post-demonetisation surge in cash, this is the sharpest uptick to date.

There have been only four occasions during the past fifty years when currency growth was higher than 17 per cent for three to four consecutive years. During 1987-90, 1993-96 and 2005-09, higher currency demand was caused by relatively high growth in nominal gross domestic product (GDP); in the last three years,