Lesson from note ban and pandemic: Keep a month's expense in cash at home

In addition, have an emergency fund equal to three-six months' expense parked in liquid fund, savings account and sweep-in fixed deposits

While digital payment has grown rapidly, especially in metros and urban areas, cash remains king. The outstanding stock of currency in circulation stands at Rs 28.5 trillion currently, compared to Rs 18 trillion during demonetisation, up 58.3 per cent over a five-year period. Against the backdrop of these macro trends, what should your personal strategy for cash management be?

Experts say your cash holdings should be split into three parts: hard cash at home, cash stacked away for contingency, and cash reserves within your portfolio.

Hard cash at home

Though you may have several payment apps, cards and bank accounts,