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The SBI's research report 'Ecowrap' has said that the withdrawal of Rs 2000 currency note is likely to be a non-event but it will have a favourable bearing on liquidity, bank deposits and interest rates. It expects that almost the entire amount of Rs 3.6 lakh crore in the form of Rs 2000 will come back to the banking system (the report assumes 10-15 per cent of the total Rs 2000 notes are in currency chests). 

Ecowrap said ‘decoding exchange/deposit dynamics, we understand, banks will already be holding some of these notes in their currency chests, thus the impact on deposits will be limited. It further said in digital payments, India has been witnessing new milestones, in both value and volume terms, which indicate the robustness of its payment ecosystem and acceptance by a wide stratum of consumers. It said ‘if we look at the 'total digital payments' per cent of nominal GDP, it has increased to 767 per cent in FY23 from 668 per cent in FY16’.

According to the report, the retail digital payments (excluding RTGS) as per cent of GDP reached 242 per cent in FY23 from 129 per cent in FY16. Among all, UPI has emerged as the most popular and preferred payment mode in India pioneering Person to Person (P2P) as well as Person to Merchant (P2M) transactions in India accounting for about 73 per cent of the total digital payments. The volume of UPI transactions has increased multi-fold from 1.8 crore in FY17 to 8375 crore in FY23.