2k note ban? Good or Bad for Banks?
The change may be distressing to the average person, yet it is seen positively by banks after 2k note ban news.
“We anticipate that bank deposit accretion will improve marginally in the near term.” This will relieve pressure on deposit rate hikes and may lead to a decrease in short-term interest rates,” said Karthik Srinivasan, senior vice president – financial sector, ICRA Ratings.
The people can deposit Rs 2,000 banknotes into their bank accounts or swap them 2k note ban of other denominations at any bank branch, according to the RBI.
The central bank issued the Rs 2,000 banknote in November 2016 to satisfy the economy’s financial needs following the demonetisation of all Rs 500 and Rs 1,000 denomination banknotes and now after 7 years 2k note got ban.
As of March 31, the total value of Rs 2,000 banknotes in circulation was Rs 3.62 lakh crore, accounting for only 10.8% of all notes in circulation. At its peak in March 2018, the total value of the currency note was Rs 6.73 lakh crore.
2k note ban news may not have any effect on bank because it was not in circulation from long time & even RBI gave 6 months of time for deposite back.