Cash crunch would disappear by the end of February 2017
Posted on: 19/Dec/2016 12:27:55 PM
Cash crunch in the country could be mostly resolved by mid-January 2017 and it will completely disappear by the end of February 2017. Since demonetisation came into effect India has faced huge cash crisis as the greater demand and lesser supply has made a huge gap in the country where most of the informal sector largely relies on cash transactions
Total replacement of all the withdrawn notes would happen by March but the cash shortage could start easing by January as nearly 10 billion pieces would have come back into the system. But RBI officials have been signalling that they don`t intend to replace all the withdrawn notes. Bankers who have been discussing the issue with the central bank report that there is a very high chance of all the notes not coming back into the system as cash.
