Deposits of withdrawn notes nears Rs.11 lakh crore

MUMBAI: Deposits made in the banned currency notes may have reached close to Rs 11 lakh crore within 21 days since the demonetization drive started and with one month to go till the time the banned notes can be deposited, bankers are saying the objective of the entire exercise will be under cloud if 90 per cent of the notes that were banned, are deposited.

The high value notes were banned to curb the stock of black money in circulation.

According to Reserve Bank of India (RBI) data, the total value of Rs 500 and Rs 1000 notes that were in circulation was Rs 14.18 lakh crore, as on end March 2016. There were 15,707 million pieces of Rs 500 notes and 6,326 pieces of Rs 1000 notes.

RBI had said Rs 8.45 lakh crore was deposited and exchanged between November 10 and November 27. The note ban was implemented from November 9 and from November 10, banks started accepting the banned notes.

Such notes can be deposited in banks and post offices till 30 December.

“Rs 8.5 lakh crore was already deposited by 27 November. So it is quite possible that the figure has gone close to Rs 11 lakh crore,” banking industry sources said.

Between 28 November and 30 November, State Bank of India – the country’s lender that commands 17 per cent market share, saw deposits increasing by Rs 22,000 crore.

The government was expecting Rs 10 lakh crore to come back into the banking system, as per the Attorney General’s submission to the Supreme Court.

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Printable version | Aug 9, 2022 12:44:26 pm |