SBI Ecowrap: Demonetisation and Cash efficiency

It is now nearly 8 months since the Government demonetized high denomination currency notes. As on 7 July 17, the newly printed currency in circulation (CIC) has reached 84% of the extinguished one. In addition, cash on hand with banks, a CIC component has now declined to 5.4% of the former (from the peak level of 23.2% in Nov’16).

Even as the economy is now close to complete remonetization, two issues need to be considered: (1) Whether ATMs are now churning out currency as per the customer needs and (2) The tangible benefits from this humongous exercise.

The report has been authored by Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI

Read the complete report here

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