Datamatics examined alternative techniques that do not solely rely on structural relationships between money and other nominal or real variables. Hence in addition to estimating currency demand functions, Datamatics seriously also explored econometric time series based algorithmic interventions.
Datamatics helped the bank to develop a user-friendly solution powered by R and Dot Net framework. It used the latest Econometric Time-Series Forecast modelling and the analysis of 10 years of data for Banknote and Coin requirement. The data was extracted from 4 different sources – Withdrawal, Retirement, Buffer Stock, and Currency-in-Circulation.
The solution used concurrent, multiple model engagement for building precision and accuracy. The solution had the ability to handle shock events seamlessly and effectively. Both long and short term estimations were head-and-shoulders above both in precision as well as in accuracy in comparison to the other competing and erstwhile estimates.