Secondly, competition from NSS instruments offering a relatively higher rate of return has put increasing pressure on banks’ deposit generation capacity. Since the beginning of FY09, NSS instruments have seen a net inflow of Rs 206.7 billion, as compared to Rs. 86.6 billion in FY08.
4 Conclusion Going forward, researchers and especially policymakers need to continue trying to reach out to various groups, including the general public, to communicate the features of the various forms of digital and physical central bank money, and how they differ from highly volatile assets that tend to give rise to far greater turmoil due to their large price fluctuations.