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What is Demonetization about?

The demonetization of Rs 500 and Rs 1000 notes in India has both positive and negative impacts on the banking sector. Positively, it leads to a substantial increase in deposits with banks, raising their cash reserves and reducing lending rates. However, it also negatively impacts non-bank financial companies and micro-finance institutions by disrupting their cash-based collection cycles. In the short-term, banks may see lower earnings as resources go towards facilitating demonetization rather than revenue-g

Author

ug121

Language

EN