Russian Embassy lodged a protest with MEA regarding cash crunch due to demonetisation.
According to reports, Russian Envoy urged the government to take immediate steps. MEA has referred the matter to Department of Economic Affairs , Finance Ministry, as per sources.
To flush more money in the market, speculation is on the repo rates adjusted by RBI. Most analysis mentions that”The decision to ban notes from 8 November mid-night sucked out 86 percent of the currency in circulation leading to deep slowdown fears in the economy.”
A good news that came up is the decline in the CPI inflation in October to a 14-month low of 4.2%.
But that couldn’t keep us all happy for long, as a report in The Times of India had mentioned 20 days after demonetisation only 3.4 percent of all notes returned were counterfeit.
To remove the fake currency was a major aim of the demonetisation move. Worse still is the speculation that the rich and wealthy have already laundered their money.
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