Half of India’s ₹2,000 notes are back with banks within a month of withdrawal announcement
- About ₹1.8 lakh crore of ₹2,000 banknotes have come back, said RBI governor
Shaktikanta Dason Thursday.
- Broadly about 85% of the ₹2,000 banknotes are coming back as bank deposits, he added.
- The average system liquidity is in surplus mode and could increase as ₹2,000 banknotes get deposited in the banks, Das said.
According to RBI, ₹3.62 lakh crore of ₹2000 banknotes were in circulation as of March 31.
“After the announcement, about ₹1.8 lakh crore of ₹2,000 banknotes have come back. This is roughly about 50% of the ₹2,000 banknotes, which were in circulation on 31st March...so 50% of the banknotes have come back,” said Shaktikanta Das, the governor of RBI speaking to reporters
Das also added that they are still working out as to how much of the ₹2,000 notes has come in as deposits and how much of it was exchanged for other bank notes. “That figure needs reconciling but broadly on a provisional basis about 85% are coming back as deposits into bank accounts,” Das said.
Boost for banks
Das mentioned in his speech that the note withdrawal could aid deposits. “The average system liquidity, however, is still in surplus mode and could increase as ₹2,000 banknotes get deposited in the banks,” he said.
“Durable liquidity could increase by around ₹1 lakh crore depending on the behaviour of depositors. This should ease the credit-deposit ratio across banks,” said a report by Kotak Institutional Equities released in May.
About 64% of the LocalCircles survey respondents said that they do not hold notes in the said denomination. While 6% indicated that they have ₹1 lakh or more in ₹2,000 rupee notes. Moreover, 15% said that they have up to ₹20,000 rupees – which can be exchanged at banks with no hassle.
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