87% of ₹2000 Notes Deposited in Banks; ₹12,000 Crore in Currency Remains Untracked: Das

87% of ₹2000 Notes Deposited in Banks; ₹12,000 Crore in Currency Remains Untracked: Das

Asif Iqbal | October 6, 2023 | 02:02 PM IST | Breaking News, India | Follow on Google News

87% of ₹2000 Notes Deposited in Banks; ₹12,000 Crore in Currency Remains Untracked: Das

Reserve Bank Governor Shaktikanta Das addressed key issues during a recent press conference, shedding light on the current status of currency withdrawals, monetary policy, government finances, and the banking sector.

Currency Withdrawal and Deposits

Governor Das disclosed that a significant 87% of the Rs 2,000 denomination notes, which were in the process of being withdrawn, have returned to banks as deposits. However, the remaining 13% of these notes have been exchanged across the counters. As of May 19, 2023, approximately ₹12,000 crore out of the total ₹3.56 lakh crore worth of ₹2,000 notes in circulation are yet to be returned. This information suggests that the demonetization process is gradually progressing, albeit with some notes still outstanding.

Extended Deadline for Note Returns

Notably, the Reserve Bank of India (RBI) had extended the deadline for the return of these notes by a week. This extension aims to facilitate a smoother transition in the withdrawal process. The RBI’s intention is to ensure that the withdrawal of high-denomination currency notes remains hassle-free for the general public.

Monetary Policy Focus

Governor Das emphasized the central bank’s commitment to achieving the 4% headline inflation target. Until this target is met, the monetary policy will remain “actively disinflationary.” This indicates the RBI’s dedication to controlling inflationary pressures and stabilizing the economy.

Banking Sector and Loan Growth

Deputy Governor J Swaminathan highlighted a noteworthy concern regarding the banking sector. While the overall credit growth stands at 13-14%, there is an “outlier” loan growth of 33%. This discrepancy prompted the RBI to address the issue of personal loans, urging banks to take preventive measures to avoid any potential risk buildup. Governor Das further urged financial institutions to proactively identify potential crises and take necessary precautions.

Government Finances and NPA Improvement

Governor Das assured that the RBI is not worried about the central government’s finances, as it serves as the government’s banker. Additionally, he mentioned that gross non-performing assets (NPAs) have shown improvement in the unaudited results of the June quarter. This improvement suggests a positive trend in asset quality, which is crucial for financial stability.

In summary, Governor Shaktikanta Das provided insights into the currency withdrawal process, monetary policy, government finances, and the banking sector during the recent press conference. These updates highlight the RBI’s commitment to managing the economy effectively and ensuring the smooth transition of currency notes while addressing potential risks in the banking sector.

Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.