Indian Currency: RBI said that the announcement of withdrawal of Rs 2,000 banknotes from circulation, announced on May 19, resulted in a decline in the growth of CIC between May 19 and June 30 in 2023, when compared to the same period in previous years Went.
The withdrawal of Rs 2000 notes was announced a few months ago by the Reserve Bank of India. After this, Rs 2000 notes worth crores have been returned to the bank. Meanwhile, the Reserve Bank of India (RBI) said in its monthly bulletin that the growth of currency in circulation (CIC), the largest component of reserve currency, declined from 8 per cent to 4.4 per cent due to the withdrawal of Rs 2,000 notes from circulation.
2000 rupee note
RBI said that the announcement of withdrawal of Rs 2,000 banknotes from circulation, announced on May 19, resulted in a decline in the growth of CIC between May 19 and June 30 in 2023, when compared to the same period in previous years. The bulletin states that by June 30, 2023, about 87 percent of the notes withdrawn from circulation have been deposited in banks.
Bank On July 3, the central bank had said that 76 per cent of the Rs 2,000 notes in circulation have been returned. The total value of Rs 2,000 banknotes withdrawn from circulation till June 30, 2023 was Rs 2.72 lakh crore. As a result, Rs 2,000 bank notes in circulation at the close of business on June 30 were Rs 0.84 lakh crore. At the same time, the people of the country can deposit or exchange 2000 rupee notes in the bank till the last date of the month of September. After this, people may have to face problems regarding 2000 rupee notes from October.
RBI said in a release that data collected from major banks shows that out of total Rs 2000 denomination banknotes, about 87 per cent are in the form of deposits and the remaining about 13 per cent were converted into other denomination banknotes. Is. Explain that the RBI Bulletin is a monthly publication that provides insight into developments in the domestic and global economies, but does not represent the views of the central bank.
Separately in the Rs 2000 bulletin, the RBI said the growth of money supply (M3) up to June 30, 2023 was higher at 11.3 per cent (year-on-year) as compared to 8.9 per cent in the corresponding period last year . Total deposits in banks increased by 12.4 per cent (9.2 per cent a year ago). At the same time, the currency to total deposits ratio declined, reflecting the withdrawal of Rs 2000 bank notes.
