More than two months after demonetisation, cash in circulation seems to be shrinking by the week, according to official data from the Reserve Bank.
Mint reported citing Reserve Bank of India data that cash in circulation -- which includes cash with the public and banks -- in the week of 6 January, shrank by 4.3 per cent from the previous week, in a clear sign that not enough new notes are being printed.
Currency in circulation has come down from ₹17.9 lakh crores as of Nov 4 to ₹10.5 lakh crore on Dec 10, to ₹9.38 lakh crores on Dec 30, to ₹8.98 lakh crore as of Jan 6, Mint noted.
Despite the Reserve Bank's and government assurances, the country continues to face cash shortages as RBI presses have been slow to replace displaced notes with new currency. On November 8, India scrapped 86 per cent of its currency under circulation in a bid to eliminate black money and fake currency.