The banks have accumulated about Rs6 trillion in deposits and have been parking much of it with the RBI since PM Narendra Modi announced the demonetisation drive. The currency, which plunged to a record on Thursday, gained 0.5% to 68.43 a dollar at 9.57am in Mumbai. More news on demonetisationBanks have been flush with cash after Prime Minister Narendra Modi banned Rs500 and Rs1,000 notes in a bid to curb graft and ordered people to deposit the money in banks. As of June the government hadn’t issued any bonds, according to RBI data. Parliament would need to approve any change to the MSS limit, which is possible in the current session that started 16 November, the person said.

Source: Mint November 25, 2016 07:07 UTC