Wednesday, December 7, 2016

7-12-2016: Update on how bank deposits are swelling after demonetization

Here is an update on how bank deposits are swelling after the ban on Rs. 500 and 1000 notes was announced on Nov 8, 2016. The table and graph below show that Rs 11 Trillion has been received till Nov 30, 2016. 

There seems to be no slowing down. The speed-up seen during the last three days (day 20 to day 22) after the ban may be due to the fact that none of these three days was a bank holiday. The banks will not accept old 500 and 1000 rupee notes after Dec 30, 2016. Some commentators feel that rate at which old notes are being deposited in banks raises doubts about the success of the demonetization 

Here is the updated listing of sources of this information:



Srinivasan Ramani said...

There have been news reports of bank deposits from Nov 9, 2016 onward growing to Rs 11.5 Trillion, but there are questions as to whether this includes valid currency as well:
Rs 11.5 lakh crore deposits!

Readers may wish to visit Bank deposit surge may end up derailing demonetisation

Srinivasan Ramani said...

I think it is too early to judge if the ban on high value currency is worth the price people are paying for it - standing in queue for long hours, reducing consumption and suffering a slowing economy. However, an article in the Economic Times goes ahead pronouncing its own judgement:
All pain, little gain

Srinivasan Ramani said...

You will find Prem Shankar Jha's article interesting:

Modi's note ban may spell catastrophe