Post Demonetisation, Rs 13 Lakh Cr Back In Banking System: Report

According to news reports, the government will gain Rs 2.5 lakh crore from the demonetisation exercise.

Rs 500 and Rs 1,000 notes were discontinued from 8 November as a step to curb black money. (Photo: PTI)

Almost a month after the Centre’s contentious move to demonetise Rs 500 and 1,000 notes in order to curb black money, close to Rs 13 lakh crores in banned notes has found its way back into the formal banking system, reports CNBC-TV18.

As per the news report, the derecognised Rs 500 and Rs 1,000 currency notes amounted to Rs 15.5 lakh crore as of 8 November. Earlier reports had pegged this figure around Rs 4 lakh crore.

Also Read: Demonetisation: Corrupt Deal Disrupted Printing of Rs 500 Notes

This figure is closer to previous estimates of the Economic Research Department of the State Bank of India which had said that “around Rs 2.5 lakh crore on a conservative basis will not be coming back into the system”.

Basing its report on data from the RBI, the news report said:

If we closely look at the data, the daily working day average deposited/exchanged at banks has declined significantly from Rs 605 billion (10-18 November) to Rs 501 billion (19-27 November) – a decline of 17 percent.

In total, between 10-27 November, Rs 8.44 lakh crore were deposited and exchanged in banks, the news report added.

(With inputs from CNBC-TV18 , PTI )