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RBI Says Banks Have Transacted ₹8.4 Lakh Crores In Deposits Or Exchanges Since Demonetisation

It is estimated that currency worth about ₹14.18 lakh crores was withdrawn by the scrapping of old ₹1,000 and ₹500 notes

29/11/2016 11:31 PM IST | Updated 30/11/2016 12:06 AM IST
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Rupak De Chowdhuri / Reuters

Indian banks have received deposits or exchanged currency worth ₹8.45 lakh crores since the government's surprise announcement withdrawing ₹1,000 and ₹500 notes on November 8, according to The Reserve Bank of India.

According to an RBI statement, exchange or deposits from November 10 up to November 27, amounted to Rs 8.44 crores, which includes exchanges worth ₹33,948 crores and deposits worth to ₹8.11 lakh crores.

In addition, people have withdrawn about ₹2.16 lakh crore from their accounts either through over the counter or ATMs, during this period. That figure is equal to about 15 per cent of the total value of the currency that was withdrawn by the scrapping of old ₹1,000 and ₹500 notes. It is estimated that currency worth about ₹14.18 lakh crores was withdrawn by the scrapping of the old notes, according to research by Credit Suisse.

The RBI report didn't say how much of the new currency disbursed was in the higher denomination ₹2,000 notes. Media reports suggest a large chunk of new money disbursed by banks has been in ₹2,000 notes, which have been notoriously hard to transact in given the paucity of smaller denomination notes.

India was estimated to have only about ₹2.2 lakh crores worth of lower denomination notes left over after the withdrawal of the higher notes, making up only about 14 per cent of the total value of money in circulation before the move.

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