Following demonetisation, banks exchanged notes/ received deposits amounting to ₹5,44,571 crore (exchange amounted to ₹33,006 crore and deposits ₹5,11,565 crore) from November 10 up to November 18, according to latest Reserve Bank of India data.

Banks have also reported that the public have withdrawn, during this period, ₹1,03,316 crore from their accounts either over the counter or through ATMs.

Consequent to the announcement of withdrawal of legal tender status of banknotes of ₹500 and ₹1,000 denominations from the midnight of November 8, the Reserve Bank of India made arrangements for exchange and/ or deposit of such notes at the counters of the Reserve Bank, commercial banks, regional rural banks and urban cooperative banks, the RBI said.

The demonetisation will lead to 86 per cent of the currency getting withdrawn. Banks and ATMs have seen serpentine queues over the last 12 days, with customers either wanting to exchange/ deposit old notes or withdraw money for daily expenses.

‘Game-changing step’ While terming the demonetisation exercise as a historic game-changing step, the All India Bank Depositors’ Association said there may have been some disconnect between the government and the RBI on the issue of efficient supply and logistics management when it came to introducing new bank notes in the economy. “The (demonetisation) measure will have key positive fallout for the common man and bank depositors. Inflation is expected to anchor at lower levels making bank loans cheaper….AIBDA expects access to affordable housing to become a reality,” said SS Bhandare, President. The government, according to Bhandare, must use the demonetisation move as an opportunity to expand the digital economy.

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