Cash in circulation at a decadal high even as digital payments soar
From 12% of the GDP in FY16, currency usage slumped to 8% in FY17 following demonetisation, and has been gradually rising since.
Synopsis
Experts attributed higher cash storage to various factors: Withdrawal of benefit payouts and subsidies from Jan Dhan accounts, better agriculture output and farm-gate receipts, and even a statistical base effect. To be sure, the economy as a whole is expected to have either contracted or remained unchanged through FY21 after the record first-quarter shrinkage.
At nearly a sixth of the gross domestic product (GDP), currency in circulation is at its highest in a decade, pointing to the likelihood of cash storage in anticipation of medical emergencies, even as much of India is shut down and mobility curbs imposed to prevent the coronavirus from spreading.
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LONDON (Reuters) -The British government has pledged to protect access to cash for vulnerable people, while the financial regulator has said it will intervene if cash machines face removal in some areas after a 40% cut in withdrawals last year as a result of the pandemic.
FILE PHOTO: A person uses a cash machine, amid the spread of the coronavirus disease (COVID-19), in London, Britain June 17, 2020. REUTERS/Hannah McKay
Financial services minister John Glen told a webcast event by consumer group Which? on Thursday the government would launch a public consultation on legislation this summer to protect access to cash within a reasonable distance.
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Governor Datuk Nor Shamsiah Mohd Yunus said all banks have their payment assistance plans, including targeted loan moratoriums, which can be offered to borrowers who have lost their jobs or suffered a reduction in income.
KUALA LUMPUR: A blanket loan moratorium may not be the best solution for borrowers following the reimposition of the movement control order (MCO) nationwide, instead they should approach banks to help them meet their debt obligations, according to Bank Negara.
Governor Datuk Nor Shamsiah Mohd Yunus said all banks have their payment assistance plans, including targeted loan moratoriums, which can be offered to borrowers who have lost their jobs or suffered a reduction in income.