Banks received INR 12.44 trillion worth old notes as deposits: RBI #Hindustan360

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RBI has also issued to the public through the banks and their branches a total of 21.8 billion pieces of notes of various denominations. View more at #Hindustan360.

The Reserve Bank of India (RBI) said on Tuesday that the banking system had received deposits worth Rs12.44 trillion in the month till 10 December, after the government invalidated high-value currency notes. Banks have remained open on most days through this period after Prime Minister Narendra Modi announced that Rs500 and Rs1,000 notes would no longer be legal tender.

During the period, RBI has also released 21.8 billion pieces of notes of various denominations, of which 20.1 billion pieces belonged to small denominations of Rs10, 20, 50 and 100s and 1.7 billion were Rs500 and Rs2,000 notes.

According to RBI data, Rs14.2 trillion worth of currency notes of Rs500 and Rs1,000 denominations were in circulation as on 31 March. The central bank has been issuing more notes and the public can “freely spend their notes instead of hoarding,” RBI deputy governor R. Gandhi said in an interview to PTI and Doordarshan News.

According to RBI data, banks had collected Rs11.55 trillion as on 6 December and Rs8.44 trillion as on 27 November. In comparison, RBI had released currency notes worth Rs4 trillion back into the system as on 5 December, Gandhi had said at a press meet to announce the monetary policy review. The regulator has also stepped up its surveillance of the whole process to pre-empt instances of cash hoarding and conversion of illicit cash using bank branches, after a few cases were uncovered by investigative agencies such as the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).

Read more about the Demonetisation

According to RBI deputy governor S.S. Mundra, the regulator has issued detailed instructions to banks about central data checking, retaining old CCTV footage and counterfeit note reporting. “If they find any inconsistencies, they should be pursued further through their internal mechanisms. RBI supervisors are also carrying out a similar exercise on various data points from banks and whenever any untoward transaction is noticed, due action would be pursued, investigation would be done,” he added.

On Tuesday, there were reports about the arrest of an RBI official over a black money case in Bengaluru. According to Mundra, the official is a junior person and has been suspended pending probe. “The RBI and its team is also cooperating and collaborating with various investigative agencies as they come back with details of the actions noticed by them,” he said.

The number of higher denomination of new Rs500 and Rs2,000 notes stood at 1.7 billion, RBI deputy governor R. Gandhi said. Photo: Reuters

View more at #Hindustan360.