After falling in the previous fortnight, banks deposits again jumped by 0.64% in the fortnight to January 6, according to the Reserve Bank data. Banks deposits increased to Rs 10,584,171 crore in the fortnight to January 6 from Rs 10,516,237 crore collected during the fortnight ended December 23, the RBI said on Friday.
Deposits collected in the fortnight to December 23 had declined by 0.7% compared to Rs 10,591,313 crore accrued during the fortnight ended December 9. This was the first time that deposits have fallen since the government announced to demonetize old Rs 500 and Rs 1,000 notes on November 8. During the fortnight ending November 25, deposits at banks had soared to Rs 10,517,719 crore from Rs 10,114,803 crore on November 11.
Banks witnessed surge in deposits scrapping of old high value notes worth Rs 20.15 trillion, which was 86% of the currency in circulation. Bank credit in the fortnight to January 6 stood at Rs 74,13,415 crore, up 0.9% compared to Rs 73,48,054 crore in the fortnight ended December 23. In the fortnight to December 23, bank credit as a whole grew marginally by 0.12% from Rs 73,39,116 crore in the fortnight ended December 9, RBI data showed.