Banking activities related to demonetisation seems to have slumped in the last ten days. A total of Rs. 2.99 lakh crore was deposited in banks from November 19 to November 27, 40 per cent less compared to Rs. 5.11 lakh crore that was deposited during November 10 to November 19, data from Reserve Bank of India show.
Withdrawal — over the counter or through ATMs — saw a slight increase in the second period, from Rs. 1.03 lakh crore to Rs. 1.13 lakh crore. Overall, Rs. 2.16 lakh crore has been withdrawn from banks from November 10 to 27. As of March 2016, the total value of notes in circulation was Rs. 16.42 lakh crore, of which around Rs. 14 lakh crore (86%) was in form of Rs. 500 and Rs. 1000 notes.
“It has been observed that over the counter exchange of the old currency notes of Rs. 500 and Rs. 1000 denomination has shown a declining trend,” the government press release dated November 24 remarked. Data shows the decline was indeed significant. During the period of November 10 to 18, on an average, Rs. 3,667 crore was exchanged over the counter every day. However, from November 19 to November 24 — after which exchange was stopped — the total amount exchanged was just Rs. 942 crores, which means Rs. 157 crores per day, on an average. On November 15, the government decided to use indelible ink to check multiple visits to the cash counter for exchange, which may have led to this drop.
Data
(In Rs. crores)
(Source: RBI)
