For demonetization common man runing around from bank to bank and ATM after ATM expecting a break from the government’s ban on cash of Rs500 and Rs1,000 notes effective from November 8 in a surprise move against graft and tax evasion.
Actually, delays in replacing the currency risk prolonging the pain in the $2 trillion plus economy of the nation. In India about 98% of consumer payments and transactions are made in cash.
Government’s move sucked out about 16.6 billion notes of the 500 denomination, and 6.7 billion Rs 1,000 bills. That means more than 23 billion notes totaling Rs 15 trillion.Bharatiya Reserve Bank Note Mudran Pvt., which prints higher denomination currency, has a capacity of just 1.3 billion notes per month after working in two shifts. If Raised the capaicty to triple shifts and it becomes 2 billion bills, which means it will need until the end of 2016 to replenish in value the Rs 1,000 notes.
Security Printing & Minting Corporation of India Ltd, whose capacity estimates at 1 billion pieces per month, will need several more months to meet the Rs 500 target, as per source.
