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In keeping with the RBI, industrial banks have reported double-digit development in deposits in January, which too could be attributed to withdrawal of Rs 2,000 forex notes.
The expansion of Reserve Cash (RM), as per the RBI knowledge, decelerated to five.8 per cent as on February 9, 2024 from 11.2 per cent a yr in the past (8.8 per cent adjusted for the first-round impression of change in Money Reserve Ratio (CRR).
Parts of RM embrace CiC, banks’ deposits in RBI and different deposits with the central financial institution.
The expansion in CiC , the most important element of RM, decelerated to three.7 per cent from 8.2 per cent a yr in the past, reflecting the withdrawal of Rs 2,000 banknotes, in keeping with the RBI.
On Could 19, 2023, RBI introduced withdrawal of Rs 2,000 denomination banknotes from circulation. As on January 31, almost 97.5 per cent of the Rs 2,000 banknotes had been returned to the banking system, and solely about Rs 8,897 crore price of such notes are nonetheless with the general public. The full worth of Rs 2,000 banknotes in circulation was Rs 3.56 lakh crore on the shut of enterprise on Could 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.
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 Rs 2,000 banknotes had been launched in November 2016, following the demonetisation of the then-prevailing Rs 1,000 and Rs 500 banknotes.
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