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.
On May 19, 2023, RBI introduced the withdrawal of Rs 2,000 denomination banknotes from circulation.
The progress in foreign money in circulation decelerated to three.7 per cent for the week ended February 9 from 8.2 per cent a 12 months in the past, reflecting the influence of the choice of the Reserve Bank of India (RBI) to withdraw Rs 2,000 banknotes.
Currency-in-circulation (CiC) refers to notes and cash in circulation, whereas foreign money with the general public contains notes and cash in circulation minus money with banks.
According to the RBI, industrial banks have reported double-digit progress in deposits in January, which too will be attributed to withdrawal of Rs 2,000 foreign money notes.
The progress of Reserve Money (RM), as per the RBI knowledge, decelerated to five.8 per cent as on February 9, 2024 from 11.2 per cent a 12 months in the past (8.8 per cent adjusted for the primary-spherical influence 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 progress in CiC , the biggest part of RM, decelerated to three.7 per cent from 8.2 per cent a 12 months in the past, reflecting the withdrawal of Rs 2,000 banknotes, in response to the RBI.
On May 19, 2023, RBI introduced the 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 value of such notes are nonetheless with the general public.
The whole worth of Rs 2,000 banknotes in circulation was Rs 3.56 lakh crore on the shut of enterprise on May 19, 2023, when the withdrawal of Rs 2,000 banknotes was introduced.
Public and entities holding such notes had been initially requested to both change or deposit them in financial institution accounts by September 30, 2023. The deadline was later prolonged to October 7, 2023. Deposit and change providers at financial institution branches had been discontinued on October 7, 2023.
Starting October 8, 2023 people have been supplied with the selection of both exchanging the foreign money 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.
(This story has not been edited by News18 employees and is revealed from a syndicated information company feed – PTI)
