{"id":243390,"date":"2023-05-22T20:36:31","date_gmt":"2023-05-22T15:06:31","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=243390"},"modified":"2023-05-22T20:36:31","modified_gmt":"2023-05-22T15:06:31","slug":"return-of-%e2%82%b92000-currency-notes-to-bolster-bank-coffers-money-market-liquidity-report","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/return-of-%e2%82%b92000-currency-notes-to-bolster-bank-coffers-money-market-liquidity-report\/","title":{"rendered":"Return of \u20b92,000 currency notes to bolster bank coffers, money market liquidity: report"},"content":{"rendered":"\n<p><b>Source: <\/b><span style=\"font-weight: 400;\">The post is based on the article <\/span><b>\u201c<\/b><b>Return of \u20b92,000 currency notes to bolster bank coffers, money market liquidity: report<\/b><b>\u201d <\/b><span style=\"font-weight: 400;\">published in <\/span><b>The Hindu <\/b>on <b>22nd May 2023<\/b><\/p>\n<h2><b>What is the News?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">According to a report, <\/span><span style=\"font-weight: 400;\">the Reserve Bank of India\u2019s(RBI) decision to withdraw \u20b92,000 notes <\/span><span style=\"font-weight: 400;\">from circulation is likely to improve banking system liquidity.<\/span><\/p>\n<h2><b>What will be the impact of the withdrawal of Rs 2000 notes?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The value of 2000-rupee notes in circulation is <\/span><span style=\"font-weight: 400;\">\u20b93.7 lakh crore or 1.3% of GDP \u2014 equivalent to 10.8% of the cash in circulation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This withdrawal will not create any big disruption as the<\/span><span style=\"font-weight: 400;\"> increased adoption of digital transactions and the availability of 100 and 500 rupee denominations will help minimize disruptions for individuals heavily reliant on cash transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But small businesses and cash-oriented sectors such as agriculture and construction could see inconvenience in the near term.<\/span><\/p>\n<h2><b>How will this decision impact banks?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">This decision could boost banks&#8217; deposit base and liquidity in the money markets by anywhere between \u20b940,000 crore to \u20b91.1 lakh crore, even if just about a third of 2000 rupees notes are flushed out by the exercise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A part of these notes which are being hoarded to avoid taxes on unaccounted-for incomes could be funneled into assets such as real estate and jewellery.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on the article \u201cReturn of \u20b92,000 currency notes to bolster bank coffers, money market liquidity: report\u201d published in The Hindu on 22nd May 2023 What is the News? According to a report, the Reserve Bank of India\u2019s(RBI) decision to withdraw \u20b92,000 notes from circulation is likely to improve banking system&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/return-of-%e2%82%b92000-currency-notes-to-bolster-bank-coffers-money-market-liquidity-report\/\">Continue reading <span class=\"screen-reader-text\">Return of \u20b92,000 currency notes to bolster bank coffers, money market liquidity: report<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[10498],"class_list":["post-243390","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1703943772},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/243390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=243390"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/243390\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=243390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=243390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=243390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}