Remonetisation is taking place at a very fast pace and currency situation will normalise in the next 2-3 months, RBI Deputy Governor Viral Acharya said on Monday.
“We have some way. Remonetisation is taking place at a very fast pace. In two-three months, we will reach full currency circulation. Currency levels might be a little lower [as compared to the pre-demonetisation levels], ” Acharya said.
The government had sucked out about Rs 15.44 lakh crore from the economy after it scrapped the use of old Rs 500 and Rs 1,000 notes from November 8 midnight in a bid to battle counterfeit currency and black money.
“The cash shortage was like a liquidity shock and unless it has led to a wealth destruction, I expect the effect to be temporary. Though it has been hard on some sectors,” Acharya said.
“The effects of demonetisation will be temporary. Our GDP estimates were reasonably close to the Central Statistics Office numbers, though the drivers could have been different.” Acharya said commenting on GDP numbers released last week.
Hinting that one could expect some uncertainty in GDP numbers, the RBI Deputy Governor said the coming quarters will show where things stand at.