Press Release

Food Inflation Remains Insulated from Demonetization


View from Mr. Rana Kapoor, MD&CEO, YES BANK & Chairman, YES Institute


Mumbai, November 24, 2016: Defying exaggerated concerns of supply disruptions and increase in inflation post demonetization, on the ground evidence suggests a comforting picture.

  • Backed by normal monsoon, food supply arrivals have been adequate so far.
  • High frequency data on food prices indicate no impact of demonetization with prices of most food items witnessing a seasonal fall in the month of November so far. 

The theme of ongoing gradual disinflation in the economy is yet to play out completely. With commendable and prompt steps taken by the government in supporting critical sectors like the food economy, I expect CPI inflation to fall below 4% in the coming months. This will create room for an immediate 25 bps rate cut from the RBI in its upcoming policy review in December, and upto 75bps by March 2017.

Notwithstanding the short term adjustment challenges in few sectors of the economy due to the ongoing demonetization exercise, I am confident that the long term benefits of swachh vitteykaran ushered in by the demonetization drive will pave way for an economic reboot and benefit all stakeholders.

The Government has effectively backed its decision of demonetization with follow up measures to ease cash crunch in the wholesale mandis.

Traders registered with various APMCs can avail withdrawal facility of Rs 50,000 per week from their own bank account. Additionally, in order to ensure smooth progress of Rabi sowing, the government has also allowed farmers to withdraw Rs 25,000 per week against crop loans sanctioned and purchase seeds with old denomination notes. Most encouraging development has been in case of vegetables, where prices have contracted 4% since last month.



YES BANK, India’s fourth largest private sector bank is a high quality, customer centric and service driven Bank. Since inception in 2004, YES BANK has grown into a ‘Full Service Commercial Bank’ providing a complete range of products, services and technology driven digital offerings, catering to corporate, MSME & retail customers. YES BANK operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES and its Mutual Fund business through YES Asset Management (India) Limited, both wholly owned subsidiaries of the Bank. Headquartered in Mumbai, it has a pan-India presence across all 29 states and 7 Union Territories in India including an IBU at GIFT City, and a Representative Office in Abu Dhabi.

For more information, please visit the Bank’s website at

For media queries, please contact:

Jitesh Patel

Delna Irani

YES BANK Limited
Aniruddha Ghosh

download app

Android App for YES BANK
App Store for YES BANK
yes pay wallet

Digital Wallet with free Virtual card and UPI which can be used to send/receive money, mobile/DTH recharge, pay bills and much more

Read More