20 February 2024

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Reserve Bank of India

Reserve Bank of India: Rs 2,000 notes worth Rs 1.80 lakh crore have come back in banks so far

Following the government’s decision to remove the Rs 2,000 notes from circulation, the Reserve Bank of India reported on Thursday that notes worth Rs 1.80 lakh crore had returned to the system.

“About 50% of the Rs 2,000 notes that were in circulation have returned to the banking system. In response to the announcement, Rs 1.80 lakh crore have so far returned, he said in a media interview after unveiling the bimonthly monetary policy.

He said that as of March 31, 2023, there were 3.62 lakh crore worth of Rs 2,000 notes in circulation.

Reserve Bank of India

The RBI declared last month that its highest denomination currency note would no longer be in use. The 2016-released Rs. 2,000 note will continue to be accepted as legal money, however individuals are urged to deposit or exchange them by September 30, 2023.

The choice is reminiscent of a shocking action taken by the government in 2016, when it overnight withdrew 86% of the cash in circulation in the economy.

The Reserve Bank of India maintained its benchmark interest rate for the second day in a row, but it made clear that it wanted to see inflation continue to decline while maintaining the growth pace.

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Reserve Bank of India keeps repo rate unchanged at 6.5%

The benchmark repurchase, or repo, rate was kept at 6.50 percent by the monetary policy committee (MPC), which consists of three members from the RBI and an equal number of outside experts. 

The central bank kept its forecast for GDP growth for the current fiscal year (April 2023 to March 2024) at 6.5% while only slightly decreasing its forecast for retail inflation to 5.1% from 5.2% before.