Current Affairs

GK MCQs Section
Q. Which term refers to the phenomenon when currency in circulation rising when digital payments are rising?
Answer: Currency Demand Paradox
Notes: Currency demand paradox happens when currency in circulation rising when digital payments are rising too. This phenomenon is seen in India. The RBI has explained the ‘currency demand paradox’ in India. In India, while UPI-led retail digital payments grew at a CAGR of 50 per cent and 27 per cent in terms of volume and value, during 2016-17 to 2021-22, the currency in circulation to GDP ratio also peaked at 14.4 per cent in 2020-21.
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