Securities houses and rating agencies have cut their estimates of India’s GDP growth in anticipation of temporary headwinds from the 8 November demonetisation of high-value currency notes.

The scrapping of Rs1,000 and Rs500 currency notes, in an attempt to curb black money, has led to a cash deficit as banks struggle to replace the demonetized currency.

The move could also dent consumption growth in Asia’s third-largest economy, which would otherwise have received a boost from a bountiful monsoon. And in the short term, the consumption that would have been fueled by black money will come to a halt.