The Hindu Editorial Analysis : 31st May 2023

31/05/2023

Table of Contents

The Hindu Editorial Analysis

The Importance of Reading The Hindu Editorial: Reading The Hindu newspaper has several benefits, including improving reading skills, facilitating comprehension, staying informed of current events, enhancing essay writing, and more. For individuals aiming for a career in banking, reading editorials is crucial for vocabulary building. In this article, we will examine today’s editorials, provide practice questions, and highlight important vocabulary words.

Precautionary holdings.

The RBI has said that the ‘currency demand paradox’ of banknotes in circulation going up even as digital payments soar is driven by cautious households.
According to the RBI, households are holding more high-value currency at home even as they substitute lower- value currency with digital transactions. “While the UPI- led retail digital payments grew at a compound annual growth rate (CAGR) of 50% and 27% in terms of volume and value, respectively (during 2016-17 to 2021-22), the currency in circulation-to- GDP ratio also rose and peaked at 14.4% in 2020-21,” RBI said in its annual report.
The RBI said that and recent data suggests a turnaround in the pandemic-induced precautionary demand for cash.
For 86 weeks since August 2021 (barring April 2022), currency in circulation has grown in single digits year-on-year
The value and volume of banknotes in circulation increased by 7.8% and 4.4%, respectively, during 2022-23 as compared with 9.9% and 5%, respectively, during 2021-22.
In value terms, the share of Rs 500 and Rs 2,000 banknotes together accounted for 87.9% of the total value of banknotes in circulation as on March 31, 2023, as compared to 87.1% as on March 31, 2022.

Practice Questions:

Why is the demand primarily for a precautionary motive?
How do households hold more high value currency at home even as they substitute lower value currency?

Important Vocabs:

Debilitate– to make somebody’s body or mind weaker
Reiterate– to repeat an opinion, statement, etc
Emblematic– serving as a symbol of a particular quality or concept;
Etched– made by or subjected to etching.
Shackle– one of a pair of metal rings connected with a chain put around a prisoner’s wrists or ankles