99.30% of demonetised money returns to RBI

The Reserve Bank of India’s (RBI) annual report has revealed that as much as 99.3 per cent of the demonetised money (Rs. 500 and Rs. 1,000 notes) has returned to the banking system. This indicates that just a miniscule (only 0.70 per cent to be exact) was left out of the government.

On November 8, 2016, Prime Minister Narendra Modi announced demonetisation, which made Rs. 500 and Rs. 1,000 notes invalid. Of the Rs. 15.41 lakh crore worth Rs 500 and Rs 1,000 notes in circulation on November 8, 2016, notes worth Rs 15.31 lakh crore have been returned. This means that just Rs. 10,720 crore of the demonetised currency did not return to the banking system.

Clearly, the Modi Government’s tall claims of curbing black money and fake currency failed. Not only did the major chunk of demonetised currency returned, but earlier, reports also surfaced that fake currency notes of the new notes were also recovered from many places.

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Former Karnataka Chief Minister Siddaramaiah took a potshot at the Modi government.

He tweeted, “Thanks to PM @narendramodi and @BJP4India for the below benefits through demonetisation:

1) Family members spent more time together in the hot sun

2) Employees took a break from hectic office schedule

1/23) Many MSMEs started saving rent by completely shutting down the business

4) India showed its soft power by allowing other countries to surpass it in net trade & growth and more

And above all, around “0.7%”(poooiint seven %) black money was washed out of the system. Great!!”

Post the note ban, the demonetised notes, called specified bank notes (SBNs), were allowed to be deposited in banks. However, heavy deposits or unusual deposits were to come under income tax scrutiny.

The “humungous task of processing and verification of specified bank notes (SBNs) was successfully achieved,” the report said.

“The SBNs received were verified, counted and processed in the sophisticated high-speed currency verification and processing system (CVPS) for accuracy and genuineness and then shredded,” the report further read.