Thursday, November 23, 2023

Money available for use falls during Diwali week

 MUMBAI: For the second successive time in 20 years, the money available for use (CIC) plunged during Diwali week as residents moved to computerized methods of installment to make their celebration buys.

Information delivered by RBI on Wednesday uncovered that during the week finished November 17, cash available for use dropped by Rs 5,934 crore to Rs 33.6 lakh crore. This year, the Diwali celebration happened between November 10 and November 14.

Cash available for use during the ongoing monetary year has declined by Rs 22,721 crore. While a portion of the downfall is because of the withdrawal of Rs 2,000 crore banknotes, financiers say that this cycle was finished in October, with 97% of the notes returned.

As indicated by Soumya Kanti Ghosh, bunch boss monetary consultant, SBI, the money decline mirrors the influence of computerized exchanges. " With the expanded acknowledgment of computerized installments in the country, the over-dependence on cash is gradually blurring. In October 2023, UPI has expanded (month-on-month) by 85.3 crore exchanges of Rs 1,36,600 crore in esteem terms," he said.

An Ecowrap research report by SBI broke down the development of money available for use during Diwali week for the past twenty years. In each year, the CIC has gone up, notwithstanding 2009, following the worldwide monetary emergency. In 2021, Diwali saw CIC increment Rs 44,000 crore during the celebration week. A year sooner, during the pandemic, it rose by Rs 43,800 crore.

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