Bank Deposits: The central bank had also extended the deadline for returning notes by one week. Das said the RBI wants to focus ‘strongly’ on the target of bringing inflation down to four per cent.
Rs 2000 Note Withdrawal: Reserve Bank of India (RBI) Governor Shaktikanta Das said that 87 percent of the Rs 2,000 notes withdrawn from circulation have returned as deposits in banks. The remainder has been replaced with notes of other denominations. At a press conference after the announcement of the bi-monthly monetary policy review, Das said that out of the Rs 3.56 lakh crore of Rs 2,000 notes in circulation till May 19, 2023, Rs 12,000 crore have still not been returned.
Notes worth Rs 3.42 lakh crore returned
RBI had said last Saturday that till September 29, notes worth Rs 3.42 lakh crore had been returned, while notes worth Rs 14,000 crore were still to be returned. The central bank had also extended the deadline for returning the notes by one week. Das said the RBI wants to focus ‘strongly’ on the target of bringing inflation down to four per cent. Until the price rise subsides, monetary policy will continue to work on controlling inflation.
No worries about central government finances
Das said that as the banker of the government, RBI has no concerns about the finances of the central government. Deputy Governor J. Swaminathan said ‘external’ credit growth of 33 per cent against overall credit growth of 13-14 per cent prompted the RBI to pay attention to the issue of personal loans and take steps to insulate banks from any risk.
Das asked investors to ‘explore the potential for distress’ and take appropriate action. The Governor said that if we look at the unaudited results, there has been an improvement in gross non-performing assets (NPAs) in the June quarter.
