Three years since demonetisation, the level of cash with the public has grown faster than the GDP growth of the country, even as digital payments — especially those on the Unified Payments Interface (UPI) platform — have seen robust growth.

Reserve Bank of India data show that the public held Rs. 20.49 lakh crore in cash as of September 2019, the latest data available, which is 13.3% more than the figure for the corresponding month of 2018. The data show that the cash held by the public made up 96% of the money in circulation, with most of the rest deposited in banks. In December 2016, one month after demonetisation and the enforced deposits in banks, this percentage stood at 83%.

Source: The Hindu

Relevant for GS Prelims & Mains Paper III; Economics