 "Demonetisation: RBI infused into system only 5.92 lakh crore till Dec 19")
The Reserve Bank of India on Wednesday said banks had issued currency worth over Rs 5.92 lakh crore to the public since the demonetisation of old high-value notes last month. The central bank also said that it had issued 2.2 billion pieces of notes of new Rs 500 and Rs 2,000 during the November 10 to December 19 period .
The currency infused into the system, however, is much less than what has been deposited in the form of defunct notes. The old Rs 500 and Rs 1,000 notes returned to RBI and currency chests amounted to Rs 12.44 lakh crore as on December 10.
Consequent to the announcement of the withdrawal of legal tender status of banknotes of Rs 500 and Rs 1,000 denominations from the midnight of November 8, 2016, the RBI said it had made arrangements for supply of "adequate quantity" of banknotes in various denominations to the public through banks.
"Over the period from November 10, 2016, up to December 19, 2016, banks have reported that banknotes worth Rs 5,92,613 crore have been issued to the public, either over the counter or through ATMs," the RBI said.
Banks were closed on November 9, the day demonetisation came into effect. The over 220,000 ATMs remained non-functional, too.
RBI said it had issued to banks and their branches, for distribution to the public, a total of 22.6 billion pieces of notes of various denominations. Of these 20.4 billion pieces belonged to small denominations of Rs 10, Rs 20, Rs 50 and Rs 100, while 2.2 billion belonged to higher denominations of Rs 2,000 and Rs 500.
Ever since banks reopened on November 10, people have been thronging their branches to deposit now invalid currency and to withdraw cash. RBI has put a limit on cash withdrawal for both individuals and companies. A shortage of currency at banks, post offices and ATMs have been reported from all over the country. The last day to deposit the defunct notes at banks is December 30.