After-Effects of Demonetization - INRDeals

After-Effects of Demonetization - INRDeals
By Admin 7 years ago

Reserve Bank of India informed the nation that ever since demonetization kicked in earlier this month, total of Rs 8.44 lakh crore has been received by various banks in the form of cash deposit and/or exchange. Out of this, Rs 33,948 crore has been exchanged, while Rs 8,11,033 crore were deposited in old notes.

At the same time, banks dispensed a total of Rs 2.16 crore via ATMs and direct teller outlets in branches.

PM Modi announced currency ban on November 8th, and till November 27th, banks were closed for a single day (November 9th). Removing the scheduled weekend holidays, banks worked for 17 days in total. Assuming an average working day of 9 hours (bank employees worked more than that in the initial days), we derived:

1. Banks accepted old currencies at an average of Rs 50,000 crore per day, or Rs 5522 crore per hour

2. Banks and ATMs dispensed cash (new currency) at an average of Rs 12,800 crore per day or Rs 1415 crore per hour

This way, only within 17 days of demonetization, Govt. of India has achieved 84% of their target. As per statements issued by Attorney General Mukul Rohatgi in Supreme Court, Govt. is expecting Rs 10 lakh crore to be received by various banks in the form of old currency.

Uttar Pradesh Accounts for Maximum Deposits Under Jan Dhan Accounts

Meanwhile, RBI also shared the amount of money deposited under Jan Dhan Accounts, after the announcement of demonetization move. As per the data, Uttar Pradesh accounted for maximum deposits of Rs 11,781 crore in the last 14 days; and there are total of 3.8 crore Jan Dhan accounts in the state.

Following Uttar Pradesh, is West Bengal, where Rs 8840 crore was deposited in Jan Dhan accounts; Rajasthan at Rs 6104 crore and Bihar at Rs 6088 crore.

In terms of maximum increase in amount of deposits, Gujarat registered 111% increase, while Karnataka registered 112% increase.

Overall, total of Rs 27,200 crore has been deposited in 25.68 crore Jan Dhan accounts in 14 days, which is a record in itself. Across all these 25.68 crore accounts, a total of Rs 45,636 crore was deposited till November 9th, which has now breached Rs 70,000 crore mark.

The huge amount of money deposited in Jan Dhan accounts of UP has raised eyebrows all over; especially due to the fact that next year’s assembly elections in the state is strategically an important event in the political calendar of India.

Interestingly, out of 16.47 lakh new Jan Dhan accounts opened pan-India, 22.3% belong to UP.

Govt. has already informed that every Jan Dhan account would be scrutinized, and any anomaly in declaration of wealth would be dealt with strongly.

Reserve Bank of India RBI demonetization INRDeals currency ban Jan Dhan account