Friday 20 January 2017

Cash situation in India is not normal

Indian government and RBI say that cash situation in Urban areas is mostly normal. That is a lie.
If cash situation is normar, then why is there a cash-withdrawal limit of

  • ₹24,000 per week per savings account?
  • ₹10,000 per day per ATM card?
  • ₹1,00,000 per week per current account?

Before demonetization, the above cash withdrawal limits did not exist. If cash situation is normal, then why is there still a need for these cash-withdrawal limits?
As long as these cash-withdrawal limits exist, basically the bank is saying that demand of cash is more than supply. Only when all cash-withdrawal limits are removed, can we say that cash situation is approaching normal.


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