RBI MPC meet: ‘Withdrawal of ₹2,000 note is temporary measure,’ says Governor Shaktikanta Das
RBI Governor Shaktikanta Das on Thursday's MPC meeting said that the withdrawal of the ₹2,000 note is a temporary measure. Once the complete withdrawal of ₹2,000 denomination from the country, there will be "adequate liquidity" in the system.
Governor Das added. In May this year, the Reserve Bank of India (RBI) decided to withdraw ₹2,000 denomination banknotes from circulation and said that all the notes must be exchanged before September 30.
Governor Das informed that the RBI imposed Incremental CRR (ICRR) of 10% between May 19 – July 28 on banks' deposit. CRR is the proportion of deposits that banks have to keep as cash with the central bank.
Notably, banks do not earn any interest on CRR balances kept with the RBI. RBI Governor called the move a ‘temporary act’ to mop up excess liquidity due to return of ₹2000 notes.
Read more on livemint.com
