Citing bank data, Das said Rs 2,000 notes worth Rs 3.62 lakh crore were in circulation as of end March 2023, of which notes worth Rs 1.8 lakh crore have come back.
About 85% of these notes that returned to banks have come back as deposits, Das revealed. This is in line with expectations, he said.
Following the announcement to scrap India’s highest-denomination banknotes, economists had said they expected bank deposits to rise by as much as Rs 2 lakh crore.
According to analysts, higher deposits will bring down banks’ deposit costs and likely impact their net interest margins or NIMs positively as credit demand remains broadly unchanged.
As per RBI data, the percentage of Rs 2,000 notes at the time of their withdrawal was just 10.8% of total notes in circulation — a big climbdown from Rs 6.73 lakh crore at its peak in March 2018.The RBI withdrew Rs 2,000 notes from circulation in May as part of its ‘clean note policy’. At the time of withdrawal, the central bank justified its move by saying these notes have served their purpose. As per an official announcement, people who hold these notes with them can get them exchanged or deposit them by September 30.Unlike in the case of the original demonetisation, the present Rs 2,000 notes will continue to remain as legal tender, as per RBI’s statement.
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