The growing cash economy

The opportunity cost of carrying cash rather than keeping money in the bank depends on the rate of interest. Indian politicians seem to share a belief with finance professionals, though in a radically different context: cash is king. Most political scandals come with the whiff of currency notes attached. Bellary mining kingpin G. Janardhan Reddy had Rs1.5 crore of cash in his house when sleuths from the Central Bureau of Investigation​ came knocking early on Monday morning. Many years ago, a former telecom minister was caught with Rs4.5 crore stashed away in his pooja room, of all places.

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