There’s an unusually high demand for cash, according to the Finance Ministry. While government officials have said the banking system is healthy and that there’s adequate cash for the excess demand, the crunch has only further tarnished the public image of banks. "The problems in India’s banking system are self-inflicted mostly because of lack of due diligence," said N.R. “There is no crisis, the banks are in perfectly good shape, we have more than adequate cash and more will be printed if necessary. Unlikely, and these problems in the banking sector are coming at a time when they are already grappling with large non-performing loans."

Source: Economic Times April 22, 2018 23:26 UTC