India, Aug. 18 -- As intensifying regional conflict and unremitting Ukrainian drone strikes send shockwaves through the populace, Russian citizens are accelerating a historic capital flight by pulling billions in physical cash from commercial banks. According to recent data compiled by financial institutions and regulatory bodies, the massive outflow has intensified sharply over the summer months, reflecting a profound erosion of public confidence in the stability of the domestic banking system and mounting fears that the state may move to seize private deposits to sustain military operations.

What Is Driving the Unprecedented Surge in Cash Withdrawals?

The rush into physical currency represents the most severe domestic liquidity drain ...