How will withdrawal of ₹2000 banknotes impact interest rates of bank deposits ahead?
RBI has asked banks to stop issuing ₹2000 banknotes, while directing public to either deposits this currency or exchange them. The period for exchanging ₹2000 notes is set between May 23rd to September 30, 2023.
The Reserve Bank of India (RBI) has decided to withdraw ₹2000 banknotes and asked citizens to either exchange or deposit this currency denomination at banks. Also, the central bank has advised banks to stop issuing the denomination banknotes with immediate effect. denomination banknotes with immediate effect. The move is expected to improve banks' deposit accretion in the near term and is also likely to ease interest rate hikes.