MUMBAI: RBI seems to be readying the pitch to offload the much-awaited data on currency in circulation. In what could be a precursor, the central bank, on Friday put out a research paper revealing that ‘unusual’ cash deposits aggregating Rs 1.6-1.7 lakh crore were made post the note ban.
Titled ‘Demonetisation and Bank Deposit Growth,” it added that in nominal terms, excess bank deposits accrued due to demonetisation were estimated in the range of Rs 2.8 to Rs 4.3 lakh crore. The paper noted that excess deposit growth in the banking system during the demonetisation period (November 11, 2016 to December 30, 2016) works out to 4-4.7 percentage points.
If the period up to mid-February, 2017 is taken into account to allow for some surge to taper-off, excess deposit growth is in the range of 3.3 to 4.2 percentage points.
“Considering some more temporal tapering of deposits, the exercise taken up to end-March, 2017 reveals that excess deposit growth would be in the range of 3.0 to 3.8 percentage points,” it added.
Aggregate deposits grew by 14.5 per cent (y-o-y) during the period November 11 to December 30, 2016, as against 10.3 per cent during the corresponding period of 2015. Overall, there appears to have been as significant increase in bank deposits due to demonetisation, the paper said, adding, “which if sustained, could have favourable impact on financial savings and their channelisation to capital markets.”