Rs 2.5 Lakh Crore Of Banned Notes May Not Be Deposited, Says SBI
Mumbai: State Bank of India has estimated that money worth Rs 2.5 lakh crore may not come back into the banking system post demonetisation of high-value notes. On November 8, the government banned bank notes of Rs 500 and Rs 1,000 worth over Rs 14 lakh crore from the economy.
In a report, the Economic Research Department of State Bank of India (SBI) said "around Rs 2.5 lakh crore on a conservative basis will not be coming back into the system".
As per the SBI analysis, the market estimate of Rs 14.18 lakh crore currency -- excluding cash with banks -- is based on March 2016 data while in reality it should be based on data available as on November 9, a day after demonetisation was announced.
SBI noted that going by data as on November 9, the amount of high currency denomination notes was Rs 15.44 lakh crore (excluding cash in the banks), an increase of Rs 1.26 lakh crore compared to the March figure.
It stated that RBI has published twice the deposited and exchanged notes data with banks in November with a gap of 9-days. SBI said: "If we closely look at the data, the daily working day average deposited/exchanged at banks has declined significantly from Rs 605 billion (November 10-18) to Rs 501 billion (November 19-27) -- a decline of 17 per cent." In total, between November 10-27, Rs 8.44 lakh crore were deposited and exchanged in banks, the report said.
"All these estimates put together show that total money coming into the system in the form of high denomination will be around Rs 13 lakh crore (as against Rs 15.44 lakh crore high value notes as on November 9)," it added.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
