After the government demonetized Rs500 and Rs1,000 currency notes, which formed about were about 86% of the cash in circulation, almost all of those notes, according to a Bloomberg report, have now found their way into bank and post office accounts. Due to the restrictions that have been imposed on cash withdrawals, substantial amounts of this money is likely to stay deposited for some time. While lack of cash is a problem, a silver liming is that the money in various accounts is earning an interest. It is mandatory for banks and post offices to give an interest of at least 4% per annum on savings accounts.
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