NOTE BAN EFFECTS IN INDIA
DATED 9/12/2016, INDIA , About 90% of cash deposited
in banks. As of December 6, nearly Rs 11.5 trillion
or 80 per cent of the banned Rs 14.13 trillion of the currency has come back
into the system,” and promised to maintain steady supply of new currency to
ease cash crunch. Will it be in terms
of the gains in revenue relative to loss of GDP? Or will it be the measure of
currency lost in the system? Or is it the time taken to get back on our feet. The Reserve Bank on Wednesday cut the
economy’s expansion forecast for current fiscal to 7.1 per cent, from 7.6 per
cent earlier, even as it said the demonetisation decision was taken after
detailed deliberations and not in haste. The
Indian economy expanded by 7.1 per cent and 7.3 per cent in the first and
second quarter of the ongoing fiscal. Recovery will take time from this hardship.
