Thanks to G (a visitor to this blog) for pointing the error. Apologies to all.
Just to reiterate, this blog pointed how RBI is accounting for the decline in Notes in Circulation. As currency had declined by 3.6 lakh crore on liabilities side. This was adjusted by showing a parallel rise in Deposits -Others by Rs 3.55 lakh crore. At that time, this blog indicated that this rise in Deposits -Others was mainly due to Reverse Repo (about Rs 1 lah crore) and Deposit Education Awareness Fund (remaining 2.5 lakh crore).
G rightly points that we need to account for different tenors in reverse repo transactions over the period. Once you look at the cumulative reverse repo transactions, you get almost the entire 3.55 lakh crore adjustment via reverse repo.
So this blog dug out reverse repo data from past days which either matured on 18-Nov-2016 or matured in days ahead. This is how it looks:
|Auction Date||Tenor (Days)||Maturity Date||Amount Outstanding (in Rs Billion)|
|Reverse Repo (Variable rate)||15-11-2016||14||29-11-2016||500.09|
|(iii) Reverse Repo (Fixed rate)||18-11-2016||3||21-11-2016||82.55|
|Total Rev Repo on 18-N0v-2016||3411.98|
So, as we can see in Deposit – Others we saw a rise of Rs 3.55 lakh crore which includes Rs 3.41 lakh crore of Reverse Repo. So, the net addition to DEA Fund is marginal at best.
From now on, we need to even religiously look at reverse repo transactions date-wise to get a truer assessment of RBI Balance Sheet.
Apologies for all this confusion and thanks a lot G for the pointer!