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Demonetization Made India’s Cash to GDP Ration Comparable to France, Germany: RBI
September 01, 2017
The annual report (2016-17) released by the Reserve Bank of India said that the note-ban helped India’s currency in circulation (CIC) to GDP ratio comparable to that of other developed nations such as France and Germany.
Last year, the recoded CIC to GDP ratio was 12.2%. However, by March 2017 it dropped to 8.8% mainly because of the impact of the demonization movement that hit the high value currency in the circulation. At this level, the ratio compares with a number of other emerging market economies such as Malaysia, Italy, Germany, and France.
