Demonetisation: RBI says Indians returned 99% of banned Rs 500, Rs 1000

Demonetisation: RBI says Indians returned 99% of banned Rs 500, Rs 1000

Given that a bigger value currency note was introduced in Rs 2,000, and a new Rs 500 was brought in immediately, and now even Rs 1,000 is coming back, one is plagued by the question that refuses to answer itself: What was the point of demonetisation after all? Following Prime Minister Narendra Modi's massive demonetisation drive to counter black money previous year, a total of Rs 15.28 lakh crore of the Rs 15.44 lakh crore in circulation have returned by June30,2017.

"The printing presses at Mysore and Salboni are getting ready to print the brand new Rs 1,000 notes which will have enhanced security features", the person said.

Recently, RBI also announced new Rs 50 currency notes in fluorescent blue. RBI said income from domestic sources fell 17% to Rs 43,232 crore as it had to pay out more interest on the money that it mopped up from banks as part of liquidity management post demonetisation. Following the move, a new Rs 2000 note and a new version of Rs 500 note was released. Unearthing of fake currency through demonetisation has also turned out to be muted. Of this, 1000-rupee notes made up about 44% and 500-rupee notes 56% approximately. "The economists deserve a Nobel Prize", Chidambaram said, sarcastically. "That is 1%. Shame on RBI which "recommended" demonetisation", P. Chidambaram said. 99 per cent of the demonetised currency has come back to the RBI.

The move that shook the nation seems like the black money holders were more benefited because the government showed them the way to convert their black in to white using proxies.

The RBI also said the supply of Rs 200 notes will soon be ramped up across the country through banking channels.

Provisionally, all that the government had gained due to demonetisation turned out to be Rs 16,050 crore, which have not returned to the banking system. The value of the SBNs received by the currency chests has been credited to the banks' account on "said to contain basis". Mint Road's Annual Report says there appears to be a structural break in the volume and value of retail electronic payments, coinciding with the onset of demonetisation and the special measures put in place to promote digital payments.

Jaitley further said that India was predominantly a cash economy and that condition needed to be altered to give a blow to black money.

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