The withdrawal of 2,000 currency notes, according to the SBI report, which was written by Group Chief Economic Adviser Soumya Kanti Ghosh, could increase bank deposits, loan repayment, consumption, RBI’s retail digital currency, and possibly overall GDP growth.
According to the RBI Governor’s statement from June 8, the system has received back about 1.8 lakh crore in 2000-rupee notes.
“The RBI’s ‘precision strike’ hits the mark on several levels, significantly relieving pressure from the banking system’s near-warlike quest for deposits and reducing the tendency towards higher interest rates in the future. Additionally, by bolstering the coffers and keeping banks prepared to meet funding needs from various sectors, the action effectively anchors the rise in incremental C/D ratio, which is close to pre-pandemic levels, according to the report.
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