Demonetization has brought back almost 99% of the Rs 1,000 and Rs 500 of the notes that was declared invalid on November 8, 2017. The Reserve Bank of India (RBI) on Wednesday revealed in its annual report that Rs 15.28 lakh crore, of the total Rs 15.44 lakh crore worth of currency notes in circulation, had been returned to it after the Demonetization drive, till June 30, 2017.
The amount that has not come back stands at a meagre Rs 16,000 crore. This figure excludes the currency held in Nepal and at district co-operative banks.
Finance Minister Arun Jaitley said in a press conference, “It is not about how much we gained. The objective was formalisation of the economy, attack on black money, making the system less dependent on cash, blow to terrorism. Each of these areas have received extremely positive effect due to Demonetization.”
However this figure, the central bank cautioned, was subject to corrections in the future as all the currency is yet to be verified and checked. “Till such time as these notes are processed by the Reserve Bank of India for their numerical accuracy and authenticity, only an estimation of specified bank notes received back is possible,” the RBI report said.
“Subject to future corrections based on verification process when completed, the estimated value of specified bank notes (SBNs) received as on June 30, 2017, is Rs 15.28 lakh crore,” it said.
RBI further added, “The value of notes in circulation is subject to adjustments to be made after completing the verification process of the notes received as also for the notes to be received from District Central Co-operative Banks (DCCBs) and Nepalese citizens and Financial Institutions.”
RBI spent Rs 7,965 crore to print new notes during July 2016 to June 2017, about Rs 4,545 crore higher than it had spend in the previous year. In 2015-16, the RBI had spend Rs 3,420 crore to print currency notes.
Government sources said, “Demonetization has not only helped in formalization but also helped detect a lot of anomalous transactions which could be black money. Thus the government would get penalty and tax on the unaccounted money but also bring those persons into the financial mainstream.”
Total currency in circulation of all denominations on November 8, 2016, was Rs 17.77 lakh crore while it stood at Rs 14.75 lakh crore as on August 4, 2017. The decrease is the net impact of withdrawal from circulation of the old Rs 500 and Rs1000 notes issued till November 08, 2016, and subsequent remonetisation efforts made by the RBI.
MONEY FOR NOTHING
- Rs 15.28 lakh cr: Total money returns to central bank, out of the Rs 15.44 lakh crore in currency that was rendered invalid on Nov 8, 2016
- 89 million: Number of Rs 1,000 notes out of total 6.7 billion in existence that did not return following demonetization
- 11.79% Drop in number of currency notes issued as on June 30.
- 7,62,072 Number of counterfeit notes detected in 2016-17
- Rs 7,965 cr Total expenditure incurred on security printing