The pandemic has triggered a ‘dash to cash’ with many households hoarding banknotes. This has resulted in the currency to GDP ratio increasing to pre-demonetisation levels of 12% in 2019-20, RBI said in its annual report. Since March 20, currency in circulation has risen to 26.9 lakh crore—a hike of 10% since lockdown. The number of Rs 2K notes in circulation has dipped sharply.
