After Diwali, the Banks Got the Deposits Of Over Rs 10,000 Crore
The banking system gained the cash deposits of worth Rs 10.000 Crore. The system predicted that this cash could the leftovers of the withdrawn cash for the festival spending.
The circulation of the currency has dropped to Rs 11,365 Crore since Diwali week, when it got the figures of Rs 20.2 Lakhs Crore to Rs 20.1 Lakhs Crore on the November 23, RBI figures say.
The study says that the currency circulation increases at the time of festival weeks and decreases at the times of the after a week of the festivals. The highest weekly rise in the currency circulation was seen during the Diwali week which accounts to be Rs 49,420 Crore. This number is almost double from the last year’s flow of currency during the Diwali week.
The studies also showed that significant number of cash remained unused and got deposited back to the banks. Due to the rise in the prices of the goods used in the festival, the spending of Diwali had seen a drop, as per the surveys conducted by the various agencies. The digital flow was also seen but not so much because of the sizable number of the buyers who shifted their marketing practices towards the digital transactions.
Almost, around 85% of the cash flow vanished from the system after the decisions of the replacements of the Rs 500 and Rs 1000 notes. This action of the government made people opt the digital mode of transactions. But, a little after the ban of notes, the currency circulation got to normal just like the old days.
The expectations of the more cash flow are there from the elections of the four states election. The finances of the elections are going to take place in formal ways. Another reason for the increase in the cash flow is the wedding season, which starts after the Diwali festivals.