Key Points
Broadly, digital payments, consumer durables and bank deposits are expected to get a boost...
The Reserve Bank of India (RBI)s move to withdraw Rs 2,000 note from circulation is expected to boost the macro economy even as the impact is likely to be short-lived..
While the move is expected to lift the deposit growth of banks, the impact will depend on the extent to which the deposited money does not get withdrawn...
But it needs to be seen as to how much of these funds will go as deposits and is not withdrawn, as normally Rs 2,000 note is held for specific purposes of storage and not for transactions, said Madan Sabnavis, chief economist at Bank of Baroda...
In a recent report, DBS Group Research said it expects deposits to grow by 40-50%, assuming that the entirety of Rs 2,000 banknotes in the system are deposited..
