Bank deposits rise by Rs. 3.26 trillion in fortnight

Bank deposits increased by 3.26 trillion rupees to 187.03 trillion rupees as on Jun 2, according to data released by the Reserve Bank of India. This growth is mainly after the RBI, last month, announced the withdrawal of 2,000-rupee denomination banknotes from circulation by Sep 30.

Growth in bank deposits rose by 11.8% on year as on Jun 2, compared with 10.42% on year in the previous fortnight.

The total value of 2,000-rupee banknotes in circulation as of Mar 31 was 3.62 trillion rupees, the RBI had said. However, the central bank had clarified that the banknotes will continue to be legal tender.

On Jun 8, RBI Governor Shaktikanta Das at the Monetary Policy press conference had said that around 1.8 trillion rupees or 50% of the 2,000-rupee denomination banknotes were deposited with banks, out of which 85% were in the form of deposits.