1000 rupee notes
New Delhi: Prime Minister Narendra Modi's historic demonetisation drive will not impact the balance sheet of Reserve Bank of India even if all the old Rs 500 and Rs 1,000 don't come back to the central bank.
There is apprehension that Modi' bold step may impact the balance sheet of the RBI as demonetisation cleanses the economy from the menace of black money, corruption and terror financing.
Sources told BTVI the RBI has informed the Parliamentary Standing Committee on Finance that even if all the old Rs 500 and Rs 1,000 notes or specified bank notes (SBN) do not come back to RBI, there will be no change in the balance sheet as such notes will still remain as the liabilities of RBI.
However, to the extent the SBNs are deposited and equivalent value of new notes credit, the notes in circulation of the RBI balance sheet will reduced and the deposits of the commercial banks component will get increased by an equal amount.
Since November 8, banks have mopped up Rs 13 lakh crore in deposits mostly in old Rs 500 and Rs 1,000 notes and hardly half of that value has been withdrawn.
The pace of printing of new notes has lagged the deposit of old notes, which has led to a severe cash crunch, slowed consumption and threatens to trim the GDP growth rate.