Demonetization flash back. The government did a rewind of sorts this year when the currency in the ATM’s ran into shortage seemingly going into the cash crunch mode.
The government has recently said that it may take a while to restore back the cash crunch in the economy and restore back the amount of economy back.
INDIA must meet an additional of 70,000 to 1 lakh crore for the ever-growing demand for the cash in the ATM’S.
IT MAY TAKE close to around 2 weeks for things to normalize and get back in shape.
However, the RBI has assured the citizens of the country that the gaps will be filled soon, and banks may soon gear up to plug in the gear supply logistics.
The finance sector needs to pump in around 17.5 lakh crore which is estimated to be the current value of the digital transaction payment.
The shock wave from November has still not been fully reversed and is yet to come on a rebound. The after effects of it are still visible though.
Cash crunch -From where did the shortage first started?
The shortage began first from the Southern States and then it spread to states such as Telangana and Andra Pradesh. Though the main metros have remained unaffected.
Four of the printing presses currency print and supply the bank notes.
At both these main printing presses, the capacity is around 16 billion per year on a two-shift basis and from the previous data the RBI seems to have stopped printing around 2000 notes.
These two currency presses would require at least a period of 1 weeks to complete the printing of the currency and plan for new note printing.