Though the Prime Minister Narendra Modi avoided to inform the country in his address to the nation when the banking system return to normalcy in the post-demonetisation period, State Bank of India (SBI) Chairperson Arundhati Bhattacharya today made it clear that it would not be possible before three months. She indicated that even it may took over three months.
Even she confirmed that return of normalcy depends with uptake in credit growth. According to her banks, indeed, have huge low-cost funds driven by deposits following the demonetisation drive. This, she felt, will flow out. “But we expect 40 per cent of that to stay with the bank,” she added.
Before return to normalcy, she felt that we should have a re-look at the deposit rates. With reference to the Prime Minister’s rate cut announcement, she asserted that “this is a liquidity-driven rate cut. The liquidity in the system in unprecedented, in terms of the fact that what we did in the first nine months of the year, we have done one-and-half times that in 30 days.”
At the same time, this excess liquidity was marked by a lower credit growth. “But we want to give a very clear signal that we are open for business. There is demand in the economy and there should not be any uncertainty on this.”
Meanwhile, Union Finance Ministry said that NRIs and Indian nationals abroad can deposit up to Rs 25,000 of the demonetised currency during the 3-6 month grace period, but only if they show the junked notes to Customs officials at the airport and get declaration form stamped. The declaration will have to be submitted at specified branches of the RBI depositing the junked currency.
For the period from up to March 31, 2017 or June 30, 2017, as applicable, a declaration form will need to be filled by resident Indians and non-resident Indians coming to India and carrying SBNs for depositing these SBNs in the specified offices of RBI in India. At the airport/land Customs stations etc on entry, Customs stamp on the said forms shall be affixed and the same shall be submitted along with other documents to RBI offices.
