Cash crunch should be over by February, but RBI may not replace all notes

MUMBAI: India’s crippling cash shortage should start easing by mid-January and be completely resolved by March assuming the Reserve Bank of India wants to replace all the notes withdrawn from circulation. ┬áDiscussions with bankers and former RBI officials reveal that just over 50% of the withdrawn notes would have come back into circulation by mid-January thanks to presses working round the clock. The smaller size of notes mean that 40 pieces can be printed per sheet instead of 36 earlier. The fact that presses are working seven days a week across three shifts could result in a nearly 50% increase in capacity, they added.

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