SBI Raises Questions Regarding Rs 11.

5L-Cr Deposit
As per RBI, the deposits in banks on account of demonetization
are Rs 11.5 lakh crore. But, SBI has raised the possibility of
double-counting of deposits mainly that of interbank deposits
and of new and valid currency notes along with withdrawn
currency.
Previously, SBI used to release its collection data daily but now
it has stopped reporting the numbers, citing that these were not
giving the proper scenario as they included interbank deposits
and deposits of legal tender, which have started coming in. The net deposits mobilized by the
bank from November 10 are understood to have touched Rs 3.5 lakh crore.
Ms. Arundhati Bhattacharya, chairman, SBI said that they are not releasing their numbers
since SBI believes that there is a possibility of double-counting. Post offices and cooperative
banks have accounts with them and they also started receiving new notes as deposits. She
further added that it was not possible to comment on the RBI numbers since she was not
aware if the issues were being addressed. The research wing of SBI, however, said that there
is a possibility of double-counting of 10-15 per cent in bank deposits.
During the monetary policy press conference, R Gandhi, RBI deputy governor said that the
total money pumped into banks has exceeded Rs 11.5 lakh crore. This had led to speculation
that most of the Rs 14.95 lakh crore of withdrawn high-denomination bank notes will come
back to banks in the form of deposits. He further added that the RBI has already supplied
banknotes of various denominations worth Rs 3.81 lakh crore and was continuing to pump in
currency on a daily basis. For the last two weeks, they have recalibrated their production
towards the (Rs) 500 and the (Rs) 100s. Once that happens, the circulation of the (Rs) 2000s
will also go up and they will witness the benefit in coming days as production supplies reach
the banks.
Providing the break-up of the currency infused, Gandhi said that the RBI has pumped in Rs
85,000 crore worth notes of Rs 100, Rs 9,000 crore worth notes of Rs 50 and Rs 3,100 crore
worth Rs 10 notes since demonetization. This is more than what the Reserve Bank had
supplied
to
the
mass
in
the
whole
of
last
three
years.

On 8th Dec, SBI share price opened above 1.15 per cent at Rs. 258.45. The stock is trading at
Rs.
258.55
against
its
previous
closing
at
Rs.
255.60.

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Article Written by
Madhurima Chowdhury