The Reserve Bank of India on Wednesday said banks have issued currency worth over Rs 5.92 lakh crore to the public since the demonetisation of old high value notes last month. The central bank also said that it has issued 2.2 billion (220 crore) pieces of notes of new Rs 500 and Rs 2,000 during the period – November 10 to December 19. The currency infused into the system, however, is much less than what has been deposited in the form of defunct notes. The old Rs 500 and Rs 1000 notes returned to RBI and Currency Chests amounted to Rs 12.44 lakh crore as on December 10.
Consequent to the announcement of withdrawal of Legal Tender status of banknotes of Rs 500 and Rs 1000 denominations from the midnight of November 8, 2016, the RBI said, it made arrangements for supply of “adequate quantity” of banknotes in various denominations to the public through the banks. “Over the period from November 10, 2016 up to December 19, 2016, banks have reported that banknotes worth Rs 5,92,613 crore have been issued to public either over the counter or through ATMs,” the RBI said.
Banks were closed on November 9, the day demonetisation came into effect. The over 2.20 lakh ATMs too remained non-functional. RBI said it has issued to the banks and their branches, for distribution to the public, a total of 22.6 billion pieces of notes of various denominations. Of these 20.4 billion pieces belonged to small denominations of Rs 10, Rs 20, Rs 50 and Rs 100, while 2.2 billion belonged to higher denominations of Rs 2000 and Rs 500.
Ever since the banks reopened on November 10, people have been thronging the banks to deposit their now invalid currency and withdraw cash. RBI has put limit on cash withdrawal for both individuals as well as companies. Shortage of currency at banks, post offices and ATMs are coming from all over the country. The last day to deposit the defunct notes at banks is December 30.