During the Festive Season:
People withdraw more cash from banks → Currency with public ⬆️
People deposit less in banks → Bank deposits ⬇️
Currency Deposit Ratio (CDR) =
Currency with public ⬆️ / Bank deposits ⬇️
So when:
- Numerator (currency) ⬆️
- Denominator (deposits) ⬇️
The CDR ⬆️ (increases)