Scrapped notes worth Rs 5.44 lakh crore received by Banks

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MUMBAI: After Prime Minister Narendra Modi announced his decision of demonetizing higher denomination currency notes on November 8, people have exchanged and deposited over Rs 5.44 lakh crore worth of scrapped Rs 500/1,000 notes at different banks till November 18.
Nearly Rs 1,03,316 crore have also been distributed by the banks over the counter and via ATMs between November 10 and November 18, the Reserve Bank said of India was quoted as saying.

Arrangements for exchange and/or deposit of scrapped Rs.500 and Rs.1,000 currency notes were made by the Reserve Bank of India, consequent to the announcement made by PM Modi of withdrawing legal tender status of banknotes of Rs 500 and Rs 1000 denominations from the midnight of November 8, 2016.

The facility for exchanging these scrapped and now invalid currency notes was available at the counters of the Reserve Bank and commercial banks, Regional Rural banks and Urban Cooperative Banks.

“The exchange and deposits done at the banks from November 10, 2016 up to November 18, 2016 amounted to Rs 5,44,571 crore (exchange amounted to Rs 33,006 crore and deposits amounted to Rs 5,11,565 crore) as per the reports of Reserve Banks.

“The reports by the banks also reported the withdrawal amounts during this period, which amounted to Rs 1,03,316 crore from their accounts either over the counter or through ATMs,” the statement further said.

Banks witnessed long queues on November 10, the day on which banks opened after the announcement of demonetisation, as people thronged banks and post offices to exchange and deposit old and invalid currency notes.

ATMs were queued up by a lot of people for cash withdrawal.

Interim, several exceptions were made by the government allowing the people to use invalid currency notes for buying petrol/diesel, rail and air tickets, payment of public utilities, taxes and government hospitals.

The government on Monday allowed farmers to purchase seeds for the rabi crops using old Rs 500 notes from government outlets or state, central agriculture university.