Explained: Why cash demand is rising during 2nd Covid wave in India

Data from the Reserve Bank of India (RBI) suggests that currency with the public jumped well over 16 per cent or by nearly Rs 4 lakh crore at the end of March 2021. Find out why cash demand has increased in India during the second Covid-19 wave.

The amount of cash in circulation in the country has witnessed a rise during the second wave of Covid-19 pandemic, signalling an increased demand for the physical currency among the public. A similar situation was witnessed last year after a nationwide lockdown was imposed in the country. Data from the Reserve Bank of India (RBI) suggests that currency with the public jumped well over 16 per cent or by nearly Rs 4 lakh crore at the end of March 2021. The amount of cash in circulation may have increased further in April in view of the worsening Covid-19 situation.