New Delhi: Cash withdrawal has been falling rapidly, post demonetisation, as borne out by the fact that it is down to Rs 32,500 crore in the week to March 24 from a peak of Rs 52,800 crore for the week ended January 13, says a report.
According to SBI research report Ecowrap, even in the span of one week (between March 17 to 24), cash withdrawal has declined by Rs 2,000 crore.
The report said the decline in cash withdrawals is "intriguing" even as limits on withdrawals were removed completely from March 13.
Moreover, with implementation of ban on cash transactions of over Rs 2 lakh from April 1, further decline in cash withdrawal may be a possibility.
The report did not cite any solid reason for the decline, but said strict monitoring on cash withdrawal and shift to digital payment could be an explanation.
"While it may be difficult to ascribe a reason, our estimates indicate that there would be a permanent liquidity injection of least Rs 1.7 lakh crore or 1.1 per cent of GDP post demonetisation," the report said, adding that this data are a reflection of the extent of formalisation of the economy.
This declining trend in cash withdrawal will also have repercussions on RBI liquidity management policy, the report added.
According to SBI research report Ecowrap, even in the span of one week (between March 17 to 24), cash withdrawal has declined by Rs 2,000 crore.
The report said the decline in cash withdrawals is "intriguing" even as limits on withdrawals were removed completely from March 13.
Moreover, with implementation of ban on cash transactions of over Rs 2 lakh from April 1, further decline in cash withdrawal may be a possibility.
The report did not cite any solid reason for the decline, but said strict monitoring on cash withdrawal and shift to digital payment could be an explanation.
"While it may be difficult to ascribe a reason, our estimates indicate that there would be a permanent liquidity injection of least Rs 1.7 lakh crore or 1.1 per cent of GDP post demonetisation," the report said, adding that this data are a reflection of the extent of formalisation of the economy.
This declining trend in cash withdrawal will also have repercussions on RBI liquidity management policy, the report added.
COMMENTS
Advertisement
High-Value Cash Transactions At Hotels, Hospitals Come Under Income Tax Scrutiny 2.08% Of Rs 2000 Notes, Valued Rs 7,409 Crore, Still To Be Returned: RBI "I Had To Dissent": Justice Nagarathna On Demonetisation Judgment Celebrated "Russian Spy" Whale Hvaldimir Found Dead In Norway: Report INDIA's "Hit With Footwear" Protest In Mumbai Over Shivaji Statue Collapse "I Only Hope...": Actor Jayasurya Breaks Silence On Sex Harassment Charges Israel Recovers Bodies Of Six Hostages, Including US Citizen, From Gaza Tunnel INDIA's "Hit With Footwear" Protest In Mumbai Over Shivaji Statue Collapse Woman Posts Pic Of Auto Rickshaw With A Window, Internet Calls It "Cool" Track Latest News Live on NDTV.com and get news updates from India and around the world.