Neutral impactEconomy
Currency In Circulation Continues To Rise Despite Higher Digital Transactions, RBI DG Murmu Says
NDTV Profit 54 min ago·18 Aug 2026, 12:45 pm
Reserve Bank of India Deputy Governor Shirish Chandra Murmu has highlighted a surprising trend: despite a massive surge in digital payments, the total amount of physical currency in circulation continues to grow. This indicates that while cash is being used less for daily transactions, it is increasingly being held as a store of value for wealth preservation.
For investors, this shift suggests that cash remains a crucial asset class in the Indian economy. It signals that while digital adoption is high, the appetite for physical assets for safety and liquidity is also strong. This dual preference can impact how investors balance their portfolios between digital assets and traditional cash holdings.
Investors should watch the pace of this cash accumulation. If physical currency growth outpaces digital transaction volume, it may reflect a preference for liquidity over spending. Monitoring these trends helps in understanding the underlying consumer sentiment regarding savings versus consumption in the market.
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
