Impact of Rs 2,000 notes withdrawal: Currency-in-circulation growth dips to 3.7% in Feb


PTI, Feb 25, 2024, 11:16 AM IST

Representative image (source: Pinterest)

Mumbai: The growth in currency in circulation decelerated to 3.7 per cent for the week ended February 9 from 8.2 per cent a year ago, reflecting the impact of the decision of the Reserve Bank of India (RBI) to withdraw Rs 2,000 banknotes.

Currency-in-circulation (CiC) refers to notes and coins in circulation, while currency with the public comprises notes and coins in circulation minus cash with banks.

According to the RBI, commercial banks have reported double-digit growth in deposits in January, which too can be attributed to withdrawal of Rs 2,000 currency notes.

The growth of Reserve Money (RM), as per the RBI data, decelerated to 5.8 per cent as on February 9, 2024 from 11.2 per cent a year ago (8.8 per cent adjusted for the first-round impact of change in Cash Reserve Ratio (CRR).

Components of RM include CiC, banks’ deposits in RBI and other deposits with the central bank.

The growth in CiC , the largest component of RM, decelerated to 3.7 per cent from 8.2 per cent a year ago, reflecting the withdrawal of Rs 2,000 banknotes, according to the RBI.

On May 19, 2023, RBI announced withdrawal of Rs 2,000 denomination banknotes from circulation.

As on January 31, nearly 97.5 per cent of the Rs 2,000 banknotes were returned to the banking system, and only about Rs 8,897 crore worth of such notes are still with the public.

The total value of Rs 2,000 banknotes in circulation was Rs 3.56 lakh crore at the close of business on May 19, 2023, when the withdrawal of Rs 2,000 banknotes was announced.

Public and entities holding such notes were initially asked to either exchange or deposit them in bank accounts by September 30, 2023. The deadline was later extended to October 7, 2023. Deposit and exchange services at bank branches were discontinued on October 7, 2023.

Starting October 8, 2023 individuals have been provided with the choice of either exchanging the currency or having the equivalent sum credited to their bank accounts at the 19 offices of RBI.

The Rs 2,000 banknotes were introduced in November 2016, following the demonetisation of the then-prevailing Rs 1,000 and Rs 500 banknotes.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Davangere: MLA Basavantappa returns Rs 1.2 lakh left behind at shop

Woman dies after being hit by luxury car driven by ‘drunk’ youth in Karnataka

MLA Bharat Shetty condemns attack on Edneer Math Swamiji’s vehicle in Kerala

‘Idiot’: Former Canadian Sikh minister slams Justin Trudeau over Khalistan issue

Salman Khan gets another threat, asked to cough up Rs 5 cr

Canadian cop suspended for attending pro-Khalistan protest outside Hindu temple

Rahul Gandhi to attend caste census meeting in Hyderabad today

Related Articles More

Markets fall in early trade amid unabated foreign fund outflows

New software for fast-tracking project approvals: Karnataka Minister Patil

In-flight passengers can access WiFi services only when allowed, say new rules

SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees

Sensex plunges 942 points to settle at nearly 3-month low; RIL, HDFC Bank biggest drag

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

India, Australia strategic partnership growing steadily: EAM Jaishankar

Davangere: MLA Basavantappa returns Rs 1.2 lakh left behind at shop

Ullal: Man attacked for allegedly providing information on illegal sand mining

Woman dies after being hit by luxury car driven by ‘drunk’ youth in Bengaluru

Woman dies after being hit by luxury car driven by ‘drunk’ youth in Karnataka

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.