India’s Reserve Bank of India (RBI) says cash continues to play a crucial role in the country’s economy even as digital payments expand. RBI Deputy Governor Shirish Chandra Murmu highlights what he calls a “cash paradox”: currency in circulation keeps rising while cash’s share in individual transactions declines.
Murmu makes the point while addressing central bankers from across the world. He notes that although more people use digital payment methods, the amount of cash held in the economy continues to grow at a double-digit pace. The emphasis across outlets is on the contrast between the growing stock of currency and the shrinking proportion of transactions conducted in cash.
Both reports frame the remarks as an observation of India’s payments landscape rather than a policy announcement. They underline that digital adoption does not eliminate cash usage in the near term, suggesting a dual-track system where cash remains relevant for payments alongside increasing digital channels.
