RBI finds cash demand harder to predict as digital payments grow
- Posted on August 18, 2026
- By Business News Today
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- 1 min read
In brief
The Reserve Bank of India confronts unprecedented challenges in forecasting currency demand as the nation's financial landscape undergoes rapid transformation. Despite accelerating digital payment adoption, banknote circulation continues expanding at double-digit growth rates, creating unpredictability in monetary planning. RBI's Deputy Governor emphasized that cash maintains critical importance across rural communities, economically disadvantaged populations, and micro-enterprises, where digital infrastructure remains limited or inaccessible.
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RBI finds cash demand harder to predict as digital payments grow
RBI faces challenges forecasting demand for banknotes as currency in circulation continues to grow at double-digit rates despite rising digital payments. Deputy Governor SC Murmu said cash remains widely used, particularly in rural areas, among low-income groups and small businesses.
