In
a week from now, the government’s 50-day timeline for the exchange of
Rs 500 and Rs 1,000 notes at bank counters will end. The passing of that
deadline, however, will bring little relief for citizens who will
continue to face restrictions on accessing their money in cash.
Arundhati Bhattacharya, chairman at State Bank of India said that it may take another two months before there is enough cash in the system to allow citizens to withdraw their money without any restrictions.
At last count, the Reserve Bank of India had pumped in Rs 5.9 lakh crore in new notes into the banking sector to meet cash needs. This, however, is only about a third of the Rs 15.4 lakh crore taken out of the system as part of the government’s decision to withdraw Rs 500 and Rs 1000 notes from circulation. 86 percent of the currency in circulation had been scrapped as a result of that decision.
The situation has improved since the initial days, said Bhattacharya, while adding that the availability of Rs 500 notes remains crucial to restoring liquidity in the system...
Arundhati Bhattacharya, chairman at State Bank of India said that it may take another two months before there is enough cash in the system to allow citizens to withdraw their money without any restrictions.
At last count, the Reserve Bank of India had pumped in Rs 5.9 lakh crore in new notes into the banking sector to meet cash needs. This, however, is only about a third of the Rs 15.4 lakh crore taken out of the system as part of the government’s decision to withdraw Rs 500 and Rs 1000 notes from circulation. 86 percent of the currency in circulation had been scrapped as a result of that decision.
The situation has improved since the initial days, said Bhattacharya, while adding that the availability of Rs 500 notes remains crucial to restoring liquidity in the system...
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