Home Business Kotak Mahindra Bank gets Rs 2,000 notes of value Rs 6,300 crore

Kotak Mahindra Bank gets Rs 2,000 notes of value Rs 6,300 crore

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Indian Private sector bank Kotak Mahindra Bank has collected Rs 6,300 crore in Rs 2,000 notes as of June 15, said a top official Mr. Virat Diwanji, Group President and Head, of Consumer Business. He shared with the media that the bank has received 3.5% of the total Rs 2,000 notes that have been released by the Reserve Bank of India, which comes to a total of Rs 6,300 crores.

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It was recently that the governor of RBI Shaktikanta Das said that the central bank has got Rs 1.8 lakh crores in the form of Rs. 2,000 notes. This makes it about 50% of the Rs. 2,000 notes that were earlier in circulation on 31 March 2023. It was reported by a famous media outlet how the Bank of Baroda – BoB has till now collected Rs. 10,000 crores of Rs. 2000 currency notes in the form of deposits or exchanges.

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A few days back, the public sector lender State Bank of India (SBI) Chairman Dinesh Kumar Khara had also shared that Rs 14,000 crore worth of Rs 2,000 value of currency notes had been received in their bank accounts as deposits, whereas notes worth Rs 3,000 crore of Rs. 2,000 notes were exchanged through the network of bank branches. This makes up 20% of the market.

On 19 May 2023, the Reserve Bank of India – RBI announced that there is a withdrawal of Rs 2,000 currency notes as an initiative for its clean note policy. Thus, in order to exchange or deposit such currency notes, the RBI has told all the banks to complete the activity by 30 September 2023. It has instructed the banks to stop the issue of Rs. 2,000 denomination bank notes with quick effect.

In November 2016, the government introduced the new currency notes of Rs. 2,000 after it banned the notes of Rs. 500 and Rs. 1,000 in its demonetization drive. As the goal was achieved and smaller denomination notes were made accessible and available in huge quantities, the printing of Rs. 2,000 notes was stopped in 2018-19.

As per the data released by the RBI, the total value of Rs. 2,000 denomination banknotes in circulation was Rs. 3.62 lakh crore, which is 10.8% of the total banknotes in circulation as of 31 March 2023.

The central government along with the RBI had made the move of demonetization compulsory in 2016, which really shocked the entire country having such Rs 500 and Rs 1000 notes. This move was not only criticized by the opposition leaders but also condemned by the public who don’t have bank accounts but keep money in cash at their homes. However, the government announced that the move was meant to remove the black money from the country.

And now in 2023, when the exchange and deposit of existing Rs 2,000 banknotes have been made compulsory till 30 September 2023, people are not really liking the fact to approach their banks or any bank to get their notes exchanged or deposited.

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