Is the public hoarding cash? Look at income velocity for answers, says SBI

Income velocity based on currency with the public went down from 0.93 in October to 0.84 in March says a report from SBI's economic research department

Why are cash shortages being reported in several states, despite data showing a rise in currency with the public?  

A possible explanation for this conundrum is that cash is being hoarded by the public. One way to examine if this is true is to look at income velocity, the rate at which money changes hands. 

The Reserve Bank of India (RBI) routinely publishes three estimates of this, based on M3 (broad money), M1 (narrow money), and currency with the public. But, these are yearly estimates. The most recent ones show income velocity based on currency with the public rose