50 days of demonetisation: Cash no longer king, India will save more


As I write, demonetisation is already 50 days old. The past few weeks have seen waves of support, dissent and desperation hit India successively. Repeated changes in rules and clarifications from the finance ministry and the Reserve Bank of India (RBI) added to the chaos.
Yes, the pain has not ended. Even as the government hoped to remonetise the currency withdrawn in 50 days, bankers believe that the shortage of cash (and the curbs on withdrawals) will persist for a longer period, with certain studies estimating that it will be at least 6-7 months before the situation normalises. Besides, government officials also hinted that the Centre might only opt for remonetisation according to requirements; it may not print fresh currency worth Rs 15.44 lakh crore that was withdrawn from the economy since November 8.

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