Banks collect close to Rs8,45,000 cr in scrapped notes

People across the country have either exchanged or deposited a total of about Rs8,45,000 crore in scrapped Rs500 and Rs1,000 notes at different banks between 9 and 27 November, after the government announced demonetisation of high-value currency, the Reserve Bank of India (RBI) said on Monday.

The banks also disbursed over Rs2,16,000 crore over the counter and via ATMs between 10 November and 17 November, according to an RBI statement.

Following the announcement of withdrawal of legal tender status of Rs500 and Rs1,000 banknotes from midnight of 8 November 2016, RBI had made arrangements for exchange and / or deposit of such notes.

The facility continues to be available at the counters of the Reserve Bank after the window for exchange of old noted closed at commercial banks, Regional Rural banks and Urban Cooperative Banks.

"Banks have since reported that such exchange / deposits effected from November 10, 2016 up to November 27, 2016 amounted to Rs8,44,982 crore," the central bank said in the statement.
Of this, the exchange (of old Rs500 /1,000 notes) amounted to Rs33,948 crore and deposits amounted to Rs8,11,033 crore.

Banks, RBI said, have also reported that the public have withdrawn Rs2,16,617 crore from their accounts either over the counter or through ATMs.

RBI has now raised the withdrawal limit for account holders of cash deposited in new legal tender from the previous limit of Rs24,000 a week in order to encourage holders of new Rs2,000 and rs500 notes to deposit money in their accounts and help circulation of money.