Bankers expect a 150-basis-point rise in deposit levels as the initial few days into the mandated exchange of ₹2,000 banknotes showed that almost 80% of the recalled currency has stayed back within the banking system.
One basis point is a hundredth of a percentage point.
“Early deposit and exchange trends of ₹2,000 currency notes indicate that a significant amount could stay back in the banking system, easing pressure on deposit growth,” a senior banking official said. “We are also keeping our deposit rates at present levels. It is wait and watch and we need to see how much this will add to our deposit growth.”
Recently, State Bank of India (SBI) chairman Dinesh Kumar Khara said that the lender had received ₹17,000 crore of ₹2,000 notes and only 20% of those had been exchanged while the remaining stayed in the system.