Currency with the public rose 24 per cent YoY by the end of August, against just 12.8 per cent in the year-ago period, according to the RBI data. The nationwide lockdown has ensured that people hoarded more cash than required fearing uncertainties.
Even as digital currencies saw traction, people’s preference for cash remained on the higher side during the lockdown, data suggests. Total currency with the public stood at Rs 25.83 trillion as of August 28, as against Rs 23.49 trillion at the end of March 31, 2020.
had earlier reported how the increase in currency in circulation
in the first four months of 2020 was higher than that of entire calendar 2019. Between January and May, currency in circulation
rose by Rs 2.66 trillion, compared with a rise of Rs 2.40 trillion in the entire 2019.