MUMBAI: Nearly 88% of Rs 2000 banknotes valued at Rs 3.14 lakh crore have returned to the banking system, the Reserve Bank of India (RBI) said on Tuesday. Out of the total notes returned, about 87% have come back in the form of deposits and the remaining around 13% has been exchanged into other denomination banknotes.
The RBI in may had announced the withdrawal of Rs 2,000 currency notes from circulation and gave public time till September 30 to either deposit such notes in accounts or exchange them at banks. “According to the data received from the banks, the total value of Rs 2000 banknotes received back from circulation is Rs 3.14 lakh crore up to July 31, 2023. Consequently, Rs 2000 banknotes in circulation as at the close of business on July 31 stood at Rs 0.42 lakh crore,” RBI said in a statement on Tuesday.
Experts say that the return of Rs 2000 notes in the form of deposits will prevent the rates on deposits to go up in the short term. “The total value Rs 2000 notes coming to banks as deposits is around 1.5% of total outstanding deposits of nearly Rs 190 lakh crore. Return of Rs 2.73 lakh crore as deposits in the banking system will offer a comfortable liquidity for the banks in the short-term. Banks will have lower pressure to raise deposit rates” said Vijay Singh Gour, Lead Analyst – BFSI Research, Care Ratings. “As we expect these deposits to be low cost for banks, it would provide some cushion to their net interest margins which are already under contracting pressure,” he added.
The Reserve Bank has urged the public to utilise the next two months to deposit or exchange the Rs 2,000 banknotes held with them to avoid any rush in the last few days before September 30.
Country bids adieu to Rs 2000 notes
Rs 3.14 lakh crore Value of Rs 2000 note retuned to banks as on July 31
Rs 3.62 lakh crore Total value of Rs 2000 notes in circulation as on March 31, 2023.
Rs 2.73 lakh crore Value of Rs 2000 note came to banks in the form of deposits
Rs 0.42 lakh crore Value of Rs 2000 notes in circulation as on July 31.
87% Share of Rs 2000 notes returned in the form of deposits