 On May 19, 2023, RBI introduced withdrawal of â¹2,000 denomination banknotes from circulation. File.
| Photo Credit: R. RAGU
The growth in forex in circulation decelerated to 3.7% for the week ended February 9 from 8.2% a yr in the past, reflecting the affect of the choice of the Reserve Bank of India (RBI) to withdraw â¹2,000 banknotes.
Currency-in-circulation (CiC) refers to notes and cash in circulation, whereas forex with the general public includes notes and cash in circulation minus money with banks.
Also learn | More than 97% of â¹2,000 notes returned: RBI
According to the RBI, industrial banks have reported double-digit growth in deposits in January, which too will be attributed to withdrawal of â¹2,000 forex notes.
The growth of Reserve Money (RM), as per the RBI knowledge, decelerated to 5.8% as on February 9, 2024 from 11.2% a yr in the past (8.8% adjusted for the first-round affect of change in Cash Reserve Ratio (CRR).
Components of RM embody CiC, banks’ deposits in RBI and different deposits with the central financial institution.
The growth in CiC , the biggest element of RM, decelerated to 3.7% from 8.2% a yr in the past, reflecting the withdrawal of â¹2,000 banknotes, in accordance to the RBI.
On May 19, 2023, RBI introduced withdrawal of â¹2,000 denomination banknotes from circulation.
As on January 31, practically 97.5% of the â¹2,000 banknotes have been returned to the banking system, and solely about â¹8,897 crore price of such notes are nonetheless with the general public.
The whole worth of â¹2,000 banknotes in circulation was Rs 3.56 lakh crore on the shut of enterprise on May 19, 2023, when the withdrawal of â¹2,000 banknotes was introduced.
Public and entities holding such notes have 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 have been discontinued on October 7, 2023.
Starting 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 places of work of RBI.
The â¹2,000 banknotes have been launched in November 2016, following the demonetisation of the then-prevailing â¹1,000 and â¹500 banknotes.
