More than 80% Indians Depositing ₹2,000 Notes Instead Of Exchanging Them

More than 80% Indians Depositing ₹2,000 Notes Instead Of Exchanging Them

A major factor for the deposits is that while an individual can exchange only Rs 20,000 a day, there is no such cap on deposits.

FPJ Web DeskUpdated: Wednesday, June 07, 2023, 09:21 PM IST
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Unlike the abrupt ban on Rs 500 and Rs 1,000 notes during demonetisation that triggered panic, the withdrawal of Rs 2,000 notes from circulation has come with ample time for people to exchange them for other denominations. Banks had also been given time to prepare counters for replacing Rs 2,000 notes with others, and keep enough cash ready for the same. But it turns out that 80 per cent of the people who've turned up at banks so far, simply want to desposit Rs 2,000 notes in their bank accounts instead of replacing it.

Relief for banks as deposit growth can strike a balance

This also increases deposits for banks, which had been concerned about the amount of money being borrowed, surpassing the cash being deposited.

A major factor for the deposits is that while an individual can exchange only Rs 20,000 a day, there is no such cap on deposits.

Ever since the process was kicked off, the State Bank of India has received Rs 2,000 notes worth Rs 17,000 crore, out of which Rs 14,000 was deposited.

Apart from boosting deposit growth beyond 10.9 per cent, the exercise will also cut down the amount of currency in circulation.

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