In times of crisis, they say cash is the king. Perhaps, the Reserve Bank of India’s (RBI) justification for the increased cash intensity in the economy in the previous year is built on this premise.
In its annual report for 2019-20 published last week, the central bank said the year ended with a surge in pandemic-related ‘rush to cash’. It noted that the currency-GDP ratio increased to pre-demonetisation level of 12 per cent in 2019-20 from 11.3 per cent a year ago.
The RBI said the rise in cash-intensity in the economy indicated a response to the pandemic which reflected in the form of a ‘dash to cash’ situation under extreme uncertainty.
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In its annual report for 2019-20 published last week, the central bank said the year ended with a surge in pandemic-related ‘rush to cash’. It noted that the currency-GDP ratio increased to pre-demonetisation level of 12 per cent in 2019-20 from 11.3 per cent a year ago.
The RBI said the rise in cash-intensity in the economy indicated a response to the pandemic which reflected in the form of a ‘dash to cash’ situation under extreme uncertainty.
Read more
India: the Cashless Fail
