In areas bordering Bangladesh, some have received strikingly high deposits in Jan Dhan accounts, said sources.
According to the Reserve Bank of India, the currency in circulation reduced by Rs 360,700 crore to Rs 1,426,900 crore during the week under review.
When banks deposit their money with RBI, the central bank offers government securities of equal value. But now, it could be running out of enough securities to offer banks against the overnight deposits.
'There has to be an 18-month transition.' 'But if the government had some prior knowledge that the high value notes were being used for an imminent terrorist activity in the country, then we have to accept the step.'
With about 2,000 qualified engineers to service ATMs across the country, it is an uphill task to modify 220,000 machines.
If struggling with dealing with queues of people asking for new notes wasn't enough, banks are now facing the challenge of storing the old notes in their strong rooms.
The first tranche was raised a few weeks ago and the company was looking to raise more if needed.
Will demonetisation lead to a rate cut, leading to higher quantum of lending?
'We have collected Rs 83,702 crore in deposits in five days.'
A government can't just take away public money, and the RBI can't extinguish its liability. 'The RBI has to honour the value any time a person with legal and taxed money lays claim on the value.'
HFCs and banks expect a drop in demand for housing loans in the short-term.
Work in mandis across UP and in northern India which till Tuesday, witnessed heavy arrivals of newly harvested paddy, saw a steep decline.
If RBI has to replace the entire stock of Rs 1,000 and Rs 500 notes with Rs 100 ones, the cost would be more than Rs 10,000 crore.
Even if RBI partially replaces the stock of the high value notes, RBI will have to incur thousands of crores of rupees in cost, say economists.
Arundhati Bhattacharya, chairman of country's largest lender State Bank of India said demonetisation of high value notes won't be a problem as the bank has done it before.
Analysts say the sell-off in risky assets will be temporary and could be a buying opportunity for long-term investors.
As a step to protect its interest as a lender, SBI will look at the financial stability and corporate governance practices in companies where it has exposure.
Ambani said, in the telecom space, the focus will be on debt reduction, and the virtual merger did away with the need for major capex and will help towards this
Lower inflation, FCNR(B) outflows likely to influence central bank decision
Going by the real effective exchange rate, the rupee is overvalued
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