99.30% of demonetised currency notes returned: RBI Report

Reserve Bank of India
Reserve Bank of India (RBI)

New Delhi, Aug 29: Nearly two years after demonetisation, the Reserve bank of India (RBI) has completed the tasks of processing and verifying of the old Rs 500, 1000 currency notes.

The central bank in its annual report for 2017-18 said that 99.30 percent of demonetised notes are back to the banking system.

The total value of old notes in circulation on November 8, 2016, was Rs 15.42 lakh crore, out of which Rs 15.31 lakh crore is back with the apex bank, RBI said in its 2017-18 annual report.

So according to the apex bank data,  the amount of banned currency notes that did not return to the system post demonetisation stands at Rs 10,700 crore, or 0.7 per cent of the old lot of notes.

A partial explanation for the missing Rs 500 and Rs 1,000 notes is provided by the report that out of the total fake notes detected at the RBI, their share during 2017-18 was higher at 36.1 per cent, compared with 4.3 per cent during 2016-17.

This was because of processing of a large volume of specified banknotes (SBNs) withdrawn from circulation by demonetisation, the report said.

On 8 November 2016, the Narendra Modi led- central government had announced scraping of all Rs 500 and Rs 1000 banknotes of the Mahatma Gandhi Series.

“Indian economy exhibited resilience during 2017-18, with upturns in investment and construction. Inflation eased on a year-on-year basis in an environment characterised by high variability.” the report further said.

“In the evolution of monetary aggregates, currency in circulation surpassed its pre-demonetisation level while credit growth revived to double digits from a historic low in the previous year”.

The annual report for 2017-18 added “Domestic financial markets were broadly stable,with rallies in equity markets and  intermittent corrections, hardening bond yields,the rupee trading with a generally appreciating bias except towards close of the year and ample liquidity in money markets”.

With agencies Input 

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