RBI Monetary Policy Live: Around 1.8 Lakh-Crore Rs 2,000 Notes Back To Banking System: RBI Governor

After announcing the RBI decision to keep the repo rate unchanged, RBI Governor Shaktikanta Das told mediapersons that a total of 3,62,000 crore Rs 2,000 currency notes were in circulation till March 31, 2023. Since the announcement of its withdrawal, 1.8 lakh-crore notes have returned to the banking system, which is roughly 50% of the circulation figure as of March-end.

He further mentioned that on a proviso basis, 85% of 2,000 currency notes are coming back to the banking system, which is the line with expectations. He also advised people to avoid last minute rush to deposit the Rs 2,000 notes.

Expert views

Meanwhile, reacting to RBI's policy rate announcement, some of the market experts shared their views. Expressing his view, Sujan Hajra, Chief Economist and Executive Director of Anand Rathi, said Rs 2,000 notes as contributing factor to the decision of RBI's Monetary Policy Committee (MPC) in its meeting today.

"Today's policy rate pause by the RBI was anticipated. In the wake of a greater-than-anticipated decline in inflation in the recent past, it was anticipated that the monetary policy would shift from a liquidity withdrawal to a neutral stance," he further said.

"However, the MPC has decided to maintain the current stance by a majority vote. This is because the demonetization of Rs. 2,000 banknotes has significantly contributed to the recent increase in liquidity. In addition, RBI's projections indicate that RBI's inflation target of 4% will be exceeded each month of the current fiscal year," Hajra added.