Saturday, April 21, 2018

Is India running out of cash again?

There's a depressing sense of deja vu about similar stories pouring in of long queues of depositors outside depleted cash machines in at least five states - Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar.

It brings back fears of the chaotic scenes across India after Narendra Modi's ruling BJP government's November 2016 ban on high-value currency notes, which then accounted for 86% of the cash in circulation. Mr Modi had said the move was a shock government crackdown on illegal cash.

It is another matter that Indians returned almost all of the money - some $240bn (£169bn) - to the banks, and the currency gamble is now widely acknowledged, in the words of an economist, as a "failure of epic proportions".

So why is there a sudden cash squeeze in at least five states, home to more than 300 million people? Full story...

Related posts:
  1. The real Indian currency crisis: things you don't hear in the news...
  2. Price of gold skyrockets in India after currency ban...
  3. India's Modi calls for move towards cashless society...
  4. What do the cash queues tell us about India?
  5. India's currency debacle...
  6. India wants people to turn in their gold...
  7. The criminal who inspired a new currency...
  8. Indian economy grinds to a halt after cash-ban: "Faith in system shaken"

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