In pursuit of our clean note policy and to check counterfeiting, we also prescribed that, by March 31, 2011, all bank branches with cash receipts of over 50 lakhs per day be equipped with a note sorting machine so that every high denomination currency note is checked for fitness and genuineness before being put back in circulation.
This was made possible due to substantial liberalisation of the capital account and greater openness to private capital. In the first three decades after the independence, CAD was mainly financed by external assistance and drawdown of forex reserves. Since much of India’s planning strategy was conceived in terms of a closed economy theoretical framework, private investment inflows into the economy were not encouraged much.