Lockdown: Find out how much cash Indians have in their homes

New Delhi, March 27, 2020 Friday

This month due to lockdown in India, people have withdrawn money from their bank account fast. So as not to disturb them in the event of an emergency.

In the fortnight ended March 13, people have pulled out a record Rs 53,000 crore from banks. This is the record level for the last 16 months.

The Reserve Bank of India (RBI) reported this on Friday. Generally, such a large amount can be deducted from banks only during festivals or elections.

How many rupees is there in the market?

The central bank (RBI), which provides currency through the banking system to the public, has announced this amount during the fortnight. As of March 13, a total of 23 lakh crore people were in the hands of ordinary people, according to RBI data.

Why did cash withdrawals increase?

Economists say that people do not want to have any technical difficulties in a crisis-like situation.

Although banks are promoting digital transactions, e-commerce websites like Flipkart have discontinued their services.

In this case, most people in the market prefer to use cash. This is why cash transactions have increased.

What could be the effect?

However, the withdrawal of such large amounts of cash in banks will also have an impact on banks' deposits.

Liquidity may be affected during the course of a market downturn. Some experts believe that cash withdrawals will decrease in the coming years.