The effect of RBI removing Rs 2,000 bank note from circulation 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.
RBI Rs 2000 Currency Note: The effect of Reserve Bank of India (RBI) removing Rs 2,000 bank note from circulation 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 the notes and coins in circulation. Whereas the currency available with the public refers to the existing notes and coins in circulation after deducting the cash deposited with the banks. According to RBI, deposits with commercial banks have increased by double digits in January. The reason for this is also the removal of Rs 2,000 notes.
Growth rate of reserve money decreased
According to 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 deposits of banks with RBI and other deposits with the central bank.
According to RBI, the growth of CIC, 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 the withdrawal of Rs 2,000 bank notes. 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 had 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 units 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 demonetisation was announced in November 2016.
