On Might 19, 2023, RBI introduced withdrawal of ₹2,000 denomination banknotes from circulation. File.
| Picture Credit score: R. RAGU
The expansion in forex in circulation decelerated to three.7% for the week ended February 9 from 8.2% a yr in the past, reflecting the affect of the choice of the Reserve Financial institution of India (RBI) to withdraw ₹2,000 banknotes.
Forex-in-circulation (CiC) refers to notes and cash in circulation, whereas forex with the general public contains notes and cash in circulation minus money with banks.
Additionally learn | Greater than 97% of ₹2,000 notes returned: RBI
In response to the RBI, industrial banks have reported double-digit progress in deposits in January, which too may be attributed to withdrawal of ₹2,000 forex notes.
The expansion of Reserve Cash (RM), as per the RBI information, decelerated to five.8% as on February 9, 2024 from 11.2% a yr in the past (8.8% adjusted for the first-round affect of change in Money Reserve Ratio (CRR).
Parts of RM embody CiC, banks’ deposits in RBI and different deposits with the central financial institution.
The expansion in CiC , the biggest element of RM, decelerated to three.7% from 8.2% a yr in the past, reflecting the withdrawal of ₹2,000 banknotes, in accordance with the RBI.
On Might 19, 2023, RBI introduced withdrawal of ₹2,000 denomination banknotes from circulation.
As on January 31, practically 97.5% of the ₹2,000 banknotes had been returned to the banking system, and solely about ₹8,897 crore value of such notes are nonetheless with the general public.
The entire worth of ₹2,000 banknotes in circulation was Rs 3.56 lakh crore on the shut of enterprise on Might 19, 2023, when the withdrawal of ₹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 companies at financial institution branches had been discontinued on October 7, 2023.
Beginning October 8, 2023 people have been supplied with the selection of both exchanging the forex or having the equal sum credited to their financial institution accounts on the 19 workplaces of RBI.
The ₹2,000 banknotes had been launched in November 2016, following the demonetisation of the then-prevailing ₹1,000 and ₹500 banknotes.
