{"id":25201,"date":"2016-12-24T08:16:03","date_gmt":"2016-12-24T08:16:03","guid":{"rendered":"http:\/\/indianewsnet.com\/?p=25201"},"modified":"2016-12-24T08:16:03","modified_gmt":"2016-12-24T08:16:03","slug":"english-whats-the-real-reason-for-the-cash-crunch-10-important-points","status":"publish","type":"post","link":"https:\/\/indianewsnet.com\/marathi\/?p=25201","title":{"rendered":"What’s the real reason for the cash crunch?: 10 important points"},"content":{"rendered":"

<\/p>\n

f you think there’s a shortage of new currency bills because the printing presses haven’t been able to keep up with the demand for cash, think again. Data from the Reserve Bank of India seems to suggest otherwise. Until December 19 (the most recent date for which remonetisation figures are available), the central bank didn’t release for distribution to the public all the new notes that it had printed before November 8<\/i>, the day on which Prime Minister Narendra Modi announced demonetisation.<\/p>\n

So what’s behind the cash crunch? Here’s an analysis, in 10 points.<\/p><\/div>\n

<\/div>\n
\n
1.<\/span><\/p>\n
\n

220 crore new notes released till December 19<\/h3>\n<\/div>\n

The Reserve Bank released 220 crore new notes to banks for distribution to the public between November 10 and December 19.<\/p>\n

<\/div>\n<\/div>\n
2.<\/span><\/p>\n
\n

Value of bills released<\/h3>\n<\/div>\n

If 90 per cent* of these notes were Rs 2,000 notes (and the rest were new Rs 500 notes), that makes the total value of new high-value bills released till December 19 Rs 4.07 lakh crore.<\/p>\n

<\/div>\n<\/div>\n
3.<\/span><\/p>\n
\n

Reserve Bank’s reply to RTI query<\/h3>\n<\/div>\n

But the RBI said in a response to a Right to Information query that it had printed Rs 2,000 notes worth Rs 4.94 lakh crore before November 8.<\/p>\n

<\/div>\n<\/div>\n
4.<\/span><\/p>\n
\n

Money printed and money released<\/h3>\n<\/div>\n

That’s almost one lakh crore more than the value of the notes it released till December 19.<\/p>\n

<\/div>\n<\/div>\n
5.<\/span><\/p>\n
\n

Notes printed after demonetisation<\/h3>\n<\/div>\n

But that’s not that whole story. The government has continued to print new notes after November 8, presumably at full capacity. Based on the capacity of the four presses, Rs 2,000 and Rs 500 notes worth Rs 2 lakh crore should have been printed since the second week of November – and that’s a conservative estimate.<\/p>\n

<\/div>\n<\/div>\n
6.<\/span><\/p>\n
\n

Total value<\/h3>\n<\/div>\n

Add that number to the Rs 4.94 lakh crore that the central bank said it had ready on November 8, and you get nearly Rs 7 lakh crore in new notes. So why was only Rs 4.07 lakh crore released till December 19? TOI asked the RBI and the finance ministry for an answer, but received no reply for 48 hours.<\/p>\n

<\/div>\n<\/div>\n
7.<\/span><\/p>\n
\n

Recalibrating ATMs<\/h3>\n<\/div>\n

However, RBI officials informally told TOI that ATMs needed to be re-calibrated to disburse new notes.<\/p>\n

<\/div>\n<\/div>\n
8.<\/span><\/p>\n
\n

Printing of Rs 500 shifted<\/h3>\n<\/div>\n

In addition, printing of Rs 500 notes had to be stopped and shifted to a different mint, after faults were detected in a few lots.<\/p>\n

<\/div>\n<\/div>\n
9.<\/span><\/p>\n
\n

Printing slowed<\/h3>\n<\/div>\n

This shift slowed printing at two mints for nearly three weeks, the officials said.<\/p>\n

<\/div>\n<\/div>\n
10.<\/span><\/p>\n
\n

Sudden release of cash could trigger rush<\/h3>\n<\/div>\n

Also, there was a belief in a section of the government that a sudden release of a large amount of cash could trigger excessive rush, possibly even a run on banks.<\/p>\n

*Based on survey of banks, RBI didn’t give break-up<\/p>\n<\/div>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

f you think there’s a shortage of new currency bills because the printing presses haven’t been able to keep up with the demand for cash, think again. Data from the Reserve Bank of India seems to suggest otherwise. Until December…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"coauthors":[],"_links":{"self":[{"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=\/wp\/v2\/posts\/25201"}],"collection":[{"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25201"}],"version-history":[{"count":1,"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=\/wp\/v2\/posts\/25201\/revisions"}],"predecessor-version":[{"id":25202,"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=\/wp\/v2\/posts\/25201\/revisions\/25202"}],"wp:attachment":[{"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25201"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/indianewsnet.com\/marathi\/index.php?rest_route=%2Fwp%2Fv2%2Fcoauthors&post=25201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}