GlobeVerge
INDIA
RBI faces challenge in predicting currency demand amid UPI growth
The Reserve Bank is grappling with rising currency in circulation despite rapid growth in digital payments. Deputy Governor S C Murmu said the cash paradox makes future currency demand difficult to predict and complicates planning for banknote production and distribution
GlobeSignal-AImedium certainty
- Why it matters
- RBI must plan banknote production and distribution without reliable forecasts, creating operational uncertainty in the monetary system.
- Most affected
- RBI's monetary operations teams — Cannot reliably forecast currency demand or plan banknote production volumes.
- Likely next
- Whether RBI revises its currency demand models or adjusts production planning methods in response to this challenge.
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