Where is the liquidity and where is all the cash?

Liquidity, which is the availability of funds, remains scarce in the Indian economy and youdo not need any economist or banker to tell that to you. Ask any small time trader orbusinessman and he will confirm it to you. Even the Reserve Bank now admits that there has been chronic shortage of liquidity in the Indian economy, notwithstanding the fact that cash in circulation in the system is over Rs.3 lac crores more than what it was in November 2016, when the blunder of demonetisation was announced. The question is where is the liquidity and where is all the cash? Mr. Akhilesh Bhargava, Business Ediotor of HW Business and Finance shares his insights on the matter.