On May 19, 2023, RBI introduced withdrawal of ₹2,000 denomination banknotes from circulation. File.
| Photo Credit: R. RAGU
The progress in foreign money in circulation decelerated to three.7% for the week ended February 9 from 8.2% a 12 months in the past, reflecting the affect of the choice of the Reserve Bank of India (RBI) to withdraw ₹2,000 banknotes.
Currency-in-circulation (CiC) refers to notes and cash in circulation, whereas foreign money with the general public includes notes and cash in circulation minus money with banks.
Also learn | More than 97% of ₹2,000 notes returned: RBI
According to the RBI, industrial banks have reported double-digit progress in deposits in January, which too will be attributed to withdrawal of ₹2,000 foreign money notes.
The progress of Reserve Money (RM), as per the RBI information, decelerated to five.8% as on February 9, 2024 from 11.2% a 12 months in the past (8.8% adjusted for the first-round affect of change in Cash Reserve Ratio (CRR).
Components of RM embrace CiC, banks’ deposits in RBI and different deposits with the central financial institution.
The progress in CiC , the biggest part of RM, decelerated to three.7% from 8.2% a 12 months in the past, reflecting the withdrawal of ₹2,000 banknotes, based on the RBI.
On May 19, 2023, RBI introduced withdrawal of ₹2,000 denomination banknotes from circulation.
As on January 31, almost 97.5% of the ₹2,000 banknotes have been returned to the banking system, and solely about ₹8,897 crore price of such notes are nonetheless with the general public.
The complete worth of ₹2,000 banknotes in circulation was Rs 3.56 lakh crore on the shut of business on May 19, 2023, when the withdrawal of ₹2,000 banknotes was introduced.
Public and entities holding such notes have been initially requested to both alternate or deposit them in financial institution accounts by September 30, 2023. The deadline was later prolonged to October 7, 2023. Deposit and alternate companies at financial institution branches have been discontinued on October 7, 2023.
Starting October 8, 2023 people have been supplied with the selection of both exchanging the foreign money or having the equal sum credited to their financial institution accounts on the 19 workplaces of RBI.
The ₹2,000 banknotes have been launched in November 2016, following the demonetisation of the then-prevailing ₹1,000 and ₹500 banknotes.
Source: www.thehindu.com
