The ratio of currency in circulation to GDP touched a new high of 14.5% for fiscal 2020-21. The surge came as the Covid pandemic increased the demand for cash and shrunk the GDP. At the same time, the surge in every form of digital payment continues on the fifth anniversary of demonetisation—whether it is Unified Payments Interface, credit & debit cards, or FASTag— demonstrating that the shift to digital and cash intensity are not mutually exclusive.
RBI’s digital payments index, which has 2018 as the base year at 100, has risen to 270.
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