‘Unusual’ cash deposits totalling Rs1.6-1.7 trillion were made during the demonetisation period, says a research paper posted on the Reserve Bank of India (RBI) website.
In nominal terms, it said, the excess deposits accrued to the banking system due to demonetisation are estimated in the range of Rs2.8-4.3 trillion.
“The ‘unusual’ cash deposit in specific accounts, which are usually less active, is estimated to be in the range of Rs1.6-1.7 trillion,” according to the paper, ‘Demonetisation and Bank Deposit Growth’.
Prime Minister Narendra Modi on 8 November had announced demonetisation of Rs1,000 and Rs 500 notes valued at Rs 15.4 trillion and constituting 86.9% of the value of total notes in circulation in a major assault on black money, fake currency and corruption.
The paper is authored by Bhupal Singh and Indrajit Roy who are directors in the monetary policy department and department of statistics and information management, respectively.