RBI finds cash demand harder to predict as digital payments grow

The Reserve Bank of India (RBI) is finding it increasingly difficult to predict demand for cash as digital payments continue to rise. This is because, despite the growth in digital payments, the amount of currency in circulation is still increasing at a rapid rate. This trend is partly due to the widespread use of cash in rural areas, among low-income groups, and small businesses.

Why it matters

The RBI is having trouble predicting cash demand due to the growth of digital payments. This could lead to inefficiencies in managing currency in circulation.

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