SBI raises doubts over Rs 11.5L-cr deposit

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Mumbai: What is the exact amount of deposits in banks on account of demonetisation? According to the RBI, the amount is Rs 11.5 lakh crore. However, SBI has raised the possibility of double-counting of deposits, particularly that of interbank deposits and of new and valid currency notes along with withdrawn currency.
SBI, which had been releasing its collection data on a daily basis, has stopped reporting the numbers this week, stating that these were not giving the right picture as they included interbank deposits and deposits of legal tender, which have started coming in. The net deposits mobilised by the bank since November 10 is understood to have touched Rs 3.5 lakh crore.
“We are not releasing our numbers because we believe that there is a possibility of double-counting. Post offices and cooperative banks have accounts with us and we also started receiving new notes as deposits,” said Arundhati Bhattacharya, chairman, SBI. She said it was not possible to comment on the RBI numbers as she was not aware whether the issues were being addressed. The research wing of SBI, however, said that there is a possibility of double-counting of 10-15% in bank deposits.
In the monetary policy press conference, RBI deputy governor R Gandhi said that the total money pumped into banks has crossed 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 This had led to speculation that most of the Rs 14.95 lakh crore of withdrawn high-denomination bank notes will come back to banks in the form of deposits. “The motivations for the decision (demonetisation) are to deal with the problem of high-quality counterfeit notes in these denominations and to unearth black money that may be held in cash. The decision has not been taken in haste but after detailed deliberations,” said Gandhi.
Gandhi said 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. “In the last two weeks, we have recalibrated our production towards the (Rs) 500 and the (Rs) 100s. Once that happens, the circulation of the (Rs) 2000s will also go up and we will see the benefit in coming days as production supplies reach the banks,” said Gandhi.
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 demonetisation. “This is more than what the Reserve Bank had supplied to the public in the whole of last three years,” he added.