Cash | Cash in banks will increase as people deposit Rs 2,000 notes: Report

New Delhi. If the current estimate of 80 per cent deposits of Rs 2,000 notes in the market holds, the cash in the banking system is expected to rise to over Rs one lakh crore in the coming days. This has been said in a report. “If even a fraction of these trends hold true at the level of all scheduled commercial banks, cash in the banking system will exceed our earlier estimate of Rs 1,00,000 crore,” said SBI’s report ‘Ecowrap’ ” However, the report states that this estimate is based on the currently available information and is subject to change based on further data. However, the overall bottom line is that the interest rate cycle has decisively peaked. Also read “As per the market trends, out of total Rs 2,000 notes received, around 80 per cent have been deposited and the remaining 20 per cent have been exchanged for smaller denomination notes,” says the report. The Reserve Bank of India (RBI) had on May 19 announced the withdrawal of Rs 2,000 bank notes as part of its currency management. Under this, a person can exchange notes of Rs 2,000 up to Rs 20,000 at a time. The note exchange facility will be open from May 23 to September 30, 2023.