The demand for cash or currency with the public (CwP) has stood 7% higher at Rs 18.25 trillion for the month ending April in comparison to Rs. 17 trillion during the period before demonetisation when high-currency notes of Rs. 1000 and Rs. 500 were scrapped to check black money and money laundering activities in the system.

The increase has come in even as digital transactions are fast gaining pace with Narendra Modi government led digital India push and amid a scenario when bank deposits have been surging since November 2016.

Through the government's dual policy initiatives of demonetisation and Jan Dhan Yojana, attempts have been made to rope in more Indians into the financial services net and owing to it a substantial 80% Indian population now has a banking account to their credit.

Jan Dhan Yojana scheme launched in the year 2014 has included as many as 310 million banking accounts that aggregate to a total deposit of Rs. 812 billion as on May 9. Since the year 2014, bank account ownership has surged by a whopping 79%.

Notably, M3 or measure of money supply in the system has also surged by 13% from Rs 124 trillion during the period before demonetisation to Rs 140.3 trillion as of May 2018. M3 which is the most relevant of liquidity includes time and current deposits, CwP value, deposits with PO, other liquid assets and institutional money market funds.

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