According to RBI --- Cash in Circulation at a Decadal High even when Digital Payments have soared. 

At nearly a sixth of the gross domestic product (GDP), currency in circulation is at its highest in a decade, pointing to the likelihood of cash storage in anticipation of medical emergencies, even as much of India is shut down and mobility curbs imposed to prevent the coronavirus from spreading. From12% of the GDP in FY16, currency usage slumped to 8% in FY17 following demonetisation, and has been gradually rising since.

Commenting on the same ---- 

Mr. Anand Kumar Bajaj, Founder, MD & CEO, PayNearby: "The demand for cash started to increase in the wake of the heightened uncertainty caused by the COVID-19 pandemic. The country is under the lock-unlock phase for over a year now. The anxiety of lockdowns has forced people to withdraw money and to keep cash handy - both for medical emergencies and basic needs in these dire times. This surge in cash usage indicates that people have started to accumulate cash in anticipation of more stringent lockdown measures that might be announced to curb the pandemic. 

Additionally, as a counter-measure to offer relief and sustenance to the crisis-affected migrant workers and low-income cohorts, the Government has disbursed Direct Benefit Transfer (DBT) to millions of Pradhan Mantri Jan Dhan Yojana (PMJDY) beneficiaries. Aadhaar ATM, which is the backbone for disbursing DBT to citizens, saw a huge surge across all PayNearby retail stores, primarily led by increased adoption in rural, semi-urban and tier-II towns. Our annual figures reported AePS withdrawals worth Rs. 10,000 Crores in Q4 FY 2021 as against Rs. 7,650 Crores vis-à-vis the same quarter last year. So, withdrawal of DBT funds can also be considered a significant reason for high cash in circulation, especially in the rural economy. We are living in unprecedented times, and people do not want to be strapped for cash when they need it the most.”