January 6, 2017
According to a report released by the State Bank of India (SBI), the cash crunch experienced in the country post demonetization will ease by the end of February. The Reserve Bank of India (RBI) has replaced around 44% of old Rs.500 and Rs.1000 notes with new notes by Dec 30. The report also states that the supply of currency will return to normal by the end of next month and economic growth will be back to normal faster than expected.
The report released by SBI forecasts that 67% of the banned currency will be replaced by the end of January and up to 89% will be replaced by the end of February if RBI continues printing notes at the current pace. Earlier, the central bank focused on printing Rs.2000 notes but now it is focusing on printing notes of smaller denominations such as Rs.100 and Rs.500. According to this report released by SBI, by end of December, RBI had supplied new currency worth Rs.6.9 lakh crore. It further estimates that RBI will release new currency worth Rs.10.3 lakh crore by end of January and worth Rs.13.8 lakh crore by end of February. This will ensure that people have sufficient access to cash in the country.