Cash questions

Increased currency circulation is intriguing

One of the most significant developments of recent years is the widespread adoption of digital payments. Facilitated by the Unified Payments Interface, between 2016-17 and 2022-23, digital payments expanded at a compound annual growth rate of 51 per cent in volume terms, and 27 per cent in value. However, intriguingly, despite the adoption and acceptability of digital payments — demand for cash, as reflected by currency in circulation (CiC) — has also been growing. A new research paper by economists at the Reserve Bank of India has analysed this issue. The paper underscores that the use of currency notes as