look news india
RBI 2000 Currency Note: The effect of the removal of Rs 2,000 bank note from circulation by the Reserve Bank of India (RBI) is beginning to be seen. According to the data, the growth of currency in circulation has declined to 3.7 percent in the week ending February 9 from 8.2 percent a year ago. Currency in circulation (CIC) refers to notes and coins in circulation. Whereas currency available to the public refers to the existing notes and coins in circulation after deducting the cash deposited in banks. According to RBI, there has been a double digit increase in deposits in commercial banks in January. The reason for this is also the removal of Rs 2,000 notes.
growth rate of reserves decreased
According to the central bank data, the growth of Reserve Money (RM) declined to 5.8 percent on February 9, 2024, which was 11.2 percent a year ago. Apart from CIC, RM includes banks' deposits with RBI and other deposits with the central bank.
According to RBI, growth of CICs, the largest segment of RM, slowed to 3.7 per cent from 8.2 per cent a year ago. The reason for this is apparently Rs 2,000 bank notes being out of circulation. The central bank had announced the withdrawal of Rs 2,000 denomination bank notes from circulation on May 19, 2023.
As of January 31, about 97.5 per cent of the Rs 2,000 notes were returned to the banking system, and only Rs 8,897 crore worth of such notes are still with the public.
You can deposit Rs 2000 notes with RBI
The total value of Rs 2,000 bank notes in circulation at the close of business on May 19, 2023 was Rs 3.56 lakh crore. The public and entities holding such notes were initially asked to exchange them or deposit them in bank accounts by September 30, 2023. Later this deadline was extended till October 7, 2023.
From October 8, 2023, people have been given the option to exchange currency at 19 RBI offices or deposit the same amount in their bank accounts. The Rs 2,000 note was introduced after the announcement of demonetisation in November 2016.