RBI says it has released only Rs 4 lakh crore but banks have received Rs 11.55 lakh crore in deposits from the public; 65% currency remains unreplaced
New Delhi: Even as India grapples with an acute shortage of currency notes, Reserve Bank of India (RBI) Governor Urjit Patel on Wednesday announced that Rs 4 lakh crore (19.1 billion notes) had been injected into the system. The crunch might go on for longer, considering that it could take several more months before the RBI plugs back the Rs 14.48 lakh crore that went out of circulation.
This leaves an astounding Rs 10.5 lakh crore (70% of currency) still left to be supplied.
The RBI also stated that Rs 11.5 lakh crore of the illegal tender had been deposited by the public in banks. Assuming that the RBI is planning to replace only the value of notes it has received so far, it would still leave Rs 7.5 lakh more to be injected into the system. That means an estimated 65% of the money taken out of circulation still remains to be replaced one month after demonetization.
This probably explains why the cash shortage across banks is still persisting across the country, with long queues at bank branches and dysfunctional ATMs a constant sight.
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