2000 Note Withdrawal News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Kotak Mahindra Bank has said that it has attracted INR54bn ($790m) in deposits as a result of the Reserve Bank of India's withdrawal of INR2,000-denomination notes. Many of the funds have come into current accounts held by the banks business customers. Kotaks president for retail liabilities and branch banking, Virat Diwanji, warned that the increase in deposits was a temporary phenomenon, as the businesses would eventually deploy the same money for other purposes such as paying vendors.

The move to withdraw Rs 2,000 denomination notes will yield deposits of up to Rs 1.5 lakh crore for the banking system, Axis Bank Chief Economist Saugata Bhattacharya said on Wednesday.

The yields on CDs maturing in three months, which were trading in the 7.00-7.20 percent range on May 17, have now fallen to 6.80-6.95 percent.

The future of Rs 2000 note will depend on whether RBI is successful in getting back all the Rs 2000 notes that's currently circulating in the economy.

People can deposit and exchange their Rs 2,000 notes at the bank from today, May 23 onwards. Watch this Visual Story to check SBI, PNB, HDFC Bank guidelines on Rs 2,000 note exchange, deposits.