RBI

Since the withdrawal announcement, the facility for the exchange of Rs 2,000 banknotes has been accessible at the 19 Issue Offices of the Reserve Bank. Notably, starting from October 9, 2023, these RBI Issue Offices have also been accepting Rs 2,000 banknotes from individuals and entities for deposit into their bank accounts.

The RBI, in a statement on Wednesday, stated that withdrawal or utilization of balances by PPBL customers from various accounts, including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc., will be permitted without restrictions up to their available balance. However, the bank will not be allowed to provide other banking services such as fund transfers (regardless of the name and nature of services like AEPS, IMPS, etc.), BBPOU, and UPI facility after February 29, 2024.

The central bank's decision to release this amount is grounded in a thorough assessment of the current and evolving liquidity conditions. As part of this initiative, individual SPDs will be informed of their incremental limits separately. It is crucial to note that all other terms and conditions governing this facility shall remain unaltered.

The RBI has advised LIC to acquire the major shareholding in HDFC Bank within one year, specifically by January 24, 2025.

As a result of the public holiday, there will be no transactions and settlements in various financial instruments, including government securities (primary and secondary), foreign exchange, money markets, and Rupee Interest Rate Derivatives on January 22.

According to a circular issued by the RBI, the money markets will commence trading at 2.30 p.m. instead of the usual 9 a.m. on January 22.

In the preceding week, the overall reserves experienced a significant decline, contracting by USD 5.89 billion to USD 617.3 billion. It's worth noting that India's forex reserves had achieved an unprecedented pinnacle of USD 645 billion in October 2021.

This growth is attributed to a transition from consumption to investment, driven by the government's focus on capital expenditure (capex), which is starting to attract private investment.

The piece, authored by a team led by Reserve Bank Deputy Governor Michael Debabrata Patra, underscores the shift in the Indian economy from consumption to investment as a key driver for the stronger-than-expected growth in 2023-24. The government's focus on capex is noted to be playing a pivotal role in encouraging private investment.

Reflecting on the current business landscape in India, Das urged stakeholders to explore the burgeoning opportunities within the Indian ecosystem.