10% of withdrawn cash comes back in the system

According to data from the RBI, public have withdrawn Rs 1,03,316 cr from their accounts either over the counter or through ATMs between Nov 10 and Nov 18

Of the Rs 14.95 lakh crore that the government withdrew in Rs 500 and Rs 1,000 notes, a little over 9% or 1.36 lakh crore has come back in the system.

According to data from the Reserve Bank of India, the public have withdrawn Rs 1,03,316 crore from their accounts either over the counter or through ATMs between November 10 and November 18. Another Rs 33,006 crore has been exchanged in the same period, the central bank said.

The ratio of currency issued by banks to deposits (including exchange) stood at 1:4. Thus banks have so far garnered Rs 5,44,571 crore through exchange and deposits and disbursed Rs 1,36,322 crore by way of exchange and customer withdrawals.

Banks had resumed operations on November 10, 2016 after they kept branches closed for public interface on November 9 to prepare for receiving old notes for which legal lender status was withdrawn.

With limits on withdrawing money at branches and through ATMs, amounts dispensed by banks to customers from accounts are limited, analysts said.  

On November 8, 2016 the government had withdrawn legal tender status for old Rs 500 and Rs 1,000 currency notes.

RBI made arrangements for exchange and/or deposit of such notes at the counters of the Reserve Bank and commercial banks, regional rural banks and urban cooperative banks.

READ OUR FULL COVERAGE ON THE MODI GOVT'S DEMONETISATION MOVE