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Arun Jaitley meets select bankers to take stock of demonetization

Finance Minister Arun Jaitley on Monday took stock of the ongoing demonetization drive at a meeting attended by IBA chief and heads of key bankers including State Bank of India and Punjab National Bank.

The meeting assumes significance as restrictions imposed by the government on currency withdrawal is coming to an end on December 30, which is also the last date for deposit of old currency notes.It is also believed that meeting discussed issues impact on lending activity, bad loans and earning. Besides, issue of diversion of cash from banks and other irregularities is also believed to have discussed.

Indian Banks’ Association (IBA) is the organisation of banks. In a surprise move, Prime Minister Narendra Modi on November 8 announced to scrap high denomination currency notes Rs 500 and 1,000 and asked people to deposit such defunct currencies by December 50 leading to huge rush at bank branches.

According to RBI, banks had got deposits of Rs 12.4 lakh crore defunct notes by December 10. At the same time the central bank has infused Rs 5.92 lakh crore in the banking system between November 9 and December 19 against Rs 15.4 lakh crore of scrapped notes.