The scramble for cash is well and truly on following the demonetisation of `500 and `1,000 currency notes. But that isn't a surprise as India is increasingly becoming a currency driven economy.Despite the huge increase in plastic cards and digital transactions in recent years, the currency in circulation as a proportion of GDP (gross domestic product) in India is the highest among emerging economies.
The currency-GDP ratio stood at 10.6% at the end of March this year, the highest in 16 years.
In fact, India has the highest currency-GDP ratio among BRICS(Brazil, Russia, India, China, South Africa) nations.Interestingly, China has seen a steady decrease in the ratio over the last 16 years......................Read more
Source: The Times of India