I dont think this made a difference - If bank of Indore has given out bad loans under pressure to politically connected people, deposits to HDFC do not fix the liability imbalance.
And then after all of this - we gave out massive loan waivers to farmers yet again.
So back to square one I suppose?
Re:How to Lose $3B of Bitcoin in India
by JumpCrisscross on Monday August 13, 2018 @09:15AM
(#17749768)
> deposits to HDFC do not fix the liability imbalance
They don't, but it gives the bank cash. Cash makes life easier.
People with money sold extra rupees to people below the maximum conversion at a small discount. Bank deposits bumped up, which was the point of the exercise—Indian state-owned banks are woefully uncompetitive and undercapitalised. The line about dirty rupees being extinguished was a farce, mostly because most large-scale illicit activity in India happens with hard currency and/or in Mauritius or Singapore.