Demand for cash increased not only in India but all over the world due to the Corona epidemic

(PTI) New delhi date. 3

The demand for currency notes has increased not only in India but across the world due to the Kovid-12 epidemic, authorities said in a statement. Authorities, however, have dismissed criticism that the ban has failed to reduce the amount of cash in the economy.

According to government sources, the development of digital payment system after the ban has reduced the dependence on cash. Sources further said that there has been an increase in digital payments made through various forms including plastic cards, net banking and Unified Payment Interface (UPI).

UPI of National Payment Corporation of India (NPCI) is developing as the main medium for payment in the country. It may be mentioned that UPI was launched in 2012.

In October 2021, transactions amounted to Rs 2.31 lakh crore, or ૧ 100 billion. A total of Rs 21 crore was transacted by UPI in October.

According to sources, the value of the currency in circulation in the United States has risen to ૭ 3.04 trillion by the end of 2020. Compared to last year, there has been an increase of 17%. Which is the biggest jump in 12 years.

It is worth mentioning that the demand for currency notes is highest in times of economic uncertainty as cash at hand is the biggest asset in such times.

Many macroeconomic factors work on the demand for currency notes. These range from economic growth to interest rates. According to the data released by the Reserve Bank of India, currency notes in circulation stood at Rs 12.5 lakh crore on November 9, 2016, which increased to Rs 2.16 lakh crore on October 4, 2021.

Rs 500 and Rs 2,000 notes accounted for 5% of the value of currency notes in circulation as on March 31, 2021. The proportion as of March 31, 2020, was 4.5 percent.