Demonetisation Nightmare only by April 2017

By : 15-Dec-2016
Demonetisation Nightmare, April 2017

The Prime Minister Narendra Modi had pleaded with the people for cooperating with him only for 50-day and all the Demonetisation crisis would then come to an end with in the promised time frame but now the Note Nightmare is said to be resolved only by April 2017.

However, Modi's deadline will not be unconditionally met as stated. 

Getting substantial cash to banks and ATMs system nationwide will depend on how many bank notes the government wants to pool into circulation.

If the Centre puts Rs 9 lakh Cr  ($135 billion) into the system then it will take up to May 2017 for the crisis to be resolved and if it wants to reintroduce Rs 14 lakh Cr ($210 billion) then it could take up to August 2017 for the same.

Printing Capacity of the RBI’s Currency Presses or Mint Compounds:

The RBI has 4 Currency Presses or Minting Grounds in (Dewas, Madhya Pradesh), (Nashik, Maharashtra), (Salboni, West Bengal) and (Mysuru, Karnataka)

The printing capacity of these mint compounds is approximately 2,670 crore (26.7 billion) notes a year

 According to the RBI's 2016 annual report they could only print 7.4 crore (74 million) notes in a day

In case the presses worked three shifts a day instead of two, their daily production capacity could be raised to 11.1 Cr (111 million) notes a day

Less than half of the machines in the presses bear the ability to print the security features required for bigger notes

Even if all the machines are made to print  the mighty notes 24 hours a day in all four presses can only  print Rs 500 notes of worth 5.56 crore (55.6 million) every day

This translates to about Rs. 2,778 crore ($418 million) in value printed every day in Rs 500 notes

This translates to about Rs. 2,778 crore ($418 million) in value printed every day in Rs 500 notes

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