Demonetisation does not have only grey areas as is being projected
Lucknow: Demonetisation of high currency notes has some grey areas but it has also got some positives. One of them is that banks in public and private sectors are cash-rich.
The State Bank of India, the largest public sector bank, for instance, received deposits to the tune of Rs 11,000 crores on a single day ( Friday) in saving accounts. Normally ,it takes about a month to get deposits of the order of Rs 8000 crores under this head. Friday was the second day of demonetisation of currency notes.
The bank account holders deposited Rs 39,000 crores in total during the first two days in different accounts. As far as exchanging currency notes is concerned the bank accounted for about Rs 1700 crores. As much as 14 lakh crore currency notes of Rs 500 and !000 denominations, which have been scrapped, are in circulation in the country .
Some of the deposits made may be withdrawn later but still this bank and others will be flush with cash and this may lead to lowering of interest rates.
Also read: Kejriwal dubs demonetisation as a ‘scam’, demands to withdraw the order
The banks are not the only beneficiaries of the new, and what many all as bold, decision. The Uttar Pradesh Power Corporation has gained from it too. It allowed payment of power bills by old notes for a few days and the result was it collected as much as Rs 214 crores in two days.
The figure is four times more than the normal collection. The government organisation is happy for another reason: some of the old defaulters have cleared their bills too. The reason may be that they considered it easier to get rid of old notes. The other option was to go to the banks and wait in long queue which they might have considered cumbersome.