Mumbai: The development in foreign money in circulation decelerated to three.7 per cent for the week ended February 9 from 8.2 per cent a 12 months in the past, reflecting the affect of the Reserve Bank of India (RBI)’s determination to withdraw Rs 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.
According to the RBI, industrial banks have reported double-digit development in deposits in January, which too will be attributed to the withdrawal of Rs 2,000 foreign money notes.
The development of Reserve Money (RM), as per the RBI information, decelerated to five.8 p.c as of February 9, 2024, from 11.2 p.c a 12 months in the past (8.8 p.c adjusted for the first-round affect of the change in Cash Reserve Ratio (CRR)).
Components of RM embrace CiC, banks’ deposits in RBI, and different deposits with the central financial institution. The development in CiC, the most important element of RM, decelerated to three.7 p.c from 8.2 p.c a 12 months in the past, reflecting the withdrawal of Rs 2,000 banknotes, in response to the RBI. (Also Read: 6 Fresh IPOs Coming This Week: Check Details Of Offerings Opening For Subscription Next Week)
On May 19, 2023, the RBI introduced the withdrawal of Rs 2,000 denomination banknotes from circulation. As of January 31, almost 97.5 p.c of the Rs 2,000 banknotes had been returned to the banking system, and solely about Rs 8,897 crore value of such notes are nonetheless with the general public.
The complete worth of Rs 2,000 banknotes in circulation was Rs 3.56 lakh crore on the shut of business on May 19, 2023, when the withdrawal of Rs 2,000 banknotes was introduced.
Public and entities holding such notes had 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 providers at financial institution branches had been discontinued on October 7, 2023. (Also Read: Are You UPI Customer Using @Paytm Handle? RBI Takes Further Actions On Paytm Payments Bank –Check Important Details)
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 places of work of RBI. The Rs 2,000 banknotes had been launched in November 2016, following the demonetization of the then-prevailing Rs 1,000 and Rs 500 banknotes.
Source: zeenews.india.com
