Note ban impact: Bank deposits exceed withdrawals by nearly 5 times

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Deposits were nearly five times as large as withdrawals over 10 days to November 18, 2016, after Prime Minister Narendra Modi announced the demonetisation of Rs 500 and Rs 1,000 notes ban on November 8, 2016.

Exchange/deposits of invalid notes–Rs 500 and Rs 1,000–amounted to Rs 5,44,571 crore ($80 billion) between November 10 and 18, according to data released by Reserve Bank of India (RBI) today.

Related Story:  Not just demonetisation, govt should completely abolish high-value notes: Anil Bokil

While exchange of soiled notes (invalid currencies are called soiled in banking parlance) amounted to Rs 33,006 crore ($4.85 billion), deposits amounted to Rs 5,11,565 crore ($75 billion).

Banks have also reported to RBI that account holders have withdrawn Rs 1,03,316 crore ($15 billion) during this period.
The Prime Minister, in one stroke, made 86% of currencies worth over Rs 14 lakh crore ($217 billion) invalid, IndiaSpend reported on November 8, 2016.

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