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Where are we, three months after Modi's demonetisation move? -Roshan Kishore

-Livemint.com

Windfall gains and remonetisation claims are still uncertain, but the Indian economy has suffered a short-term pain for sure

On 8 November, 2016 Prime Minister Narendra Modi announced the scrapping of Rs 500 and Rs1,000 notes, which constituted 86% of the currency in circulation. Exactly three months later, where does the Indian economy stand today?

In an interview to Mint after the Union budget, economic affairs secretary Shaktikanta Das claimed that remonetisation process is nearly complete.

Latest data from the Reserve Bank of India, or RBI (for week ending 20 January, 2017) shows that cash with public is still 40% less than what it was a year ago.

On the other hand, year-on-year increase in currency with banks has returned to its normal level, suggesting that banks have deposited all demonetised currency with the RBI.

Overall currency in circulation is 57% of what it was before note-ban decision. The comparisons have been made for latest data available for week ending 27 January, 2017 and 4 November, 2016.

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