Good news! Will Be Free of Cash Crunch Feb Says SBI Report
By MEHER ONISA : 06-Jan-2017
MUMBAI: With the demonetisation move, the Reserve Bank of India was able to replace 44% of the approximate extinguished currency till December 30.
According to State Bank of India, the largest commercial bank in the country, India's currency supply will return to shape by February. The domestic market which has been devastated by the dumping of Rs 500 and Rs 1,000 notes is showing signs of flourishing faster than expected.
THE SBI REPORT FORECAST:
By the end of January, 67% of the cancelled currency will be replaced if the central bank prints multiple denominations at the current speed or speed up to 80-89% by the end of February. From March on wards, things in the system will be streamlined.
CASH CURRENCY CONFUSION:
Central bank reports about the cumulative cash amounting to Rs 24 lakh crore on November 8 in old currency had been gathered by the bank. Rs 500 and Rs 1,000 notes added up to Rs 20.51 lakh crore.
RBI made clarifications on the money that remained in the currency chests that remained undistributed to the public.
Affidavit filed by the government in the SC disclosed information about the proportion of withdrawal of Rs 15.25 lakh crore out of the total Rs 17.74 lakh crore. The remaining amount includes currency in chests not available to the public.
Ministry of Finance had notified to the public that by December 10, Rs 12.44 lakh crore of old notes were deposited but clarified that double cash counting might had been carried out due to inter and intra banking deposits with new currency arriving into the system.