99 % demonetised currency returned to system: RBI report

Rs 500, Rs 1,000, old notes

New Delhi, Aug 30: The Reserve Bank of India (RBI) on Wednesday revealed Rs 15.28 lakh crore of the Rs 15.44 lakh crore demonetised currency returned to the financial system post the note ban last November. 

The bank also confirmed million pieces of the banned Rs 1,000 totalling Rs 8,900 crore have not been returned, out of 6,700 million notes.

Last year on November 8, The Central government announced demonetisation of Rs 1000 and Rs 500 note to curb black money from the market.

However in replacement of old Rs 500 notes, the RBI issued new denomination of the same and introduced Rs 2,000 note post demonetisation.

To amplify the lower currency notes in the circulation, the apex bank recently issued new currency note of Rs 200 for the first time in the history.

Here are the key points :

  • RBI detected 3,17,567 pieces of old counterfeit Rs 500 notes.
  • 1,77,195 of counterfeit Rs 100 notes.
  •  On the day demonetisation was annouced, the total currency in circulation stood at Rs 17.97 lakh crore.
  • Until March 31, 2017, the country had 588.2 crore banknotes of Rs 500 — both old and new — in circulation, as compared 1,570.7 crore on March 31, 2016.
  • RBI issued 328.5 crore pieces of new Rs 2,000 notes which were in circulation as on March 31, 2017.
  • The apex bank spent Rs 7965 crore in printing currency notes in 2016-17, just more than double the Rs 3420 crore against last year.
  • Total of currency withdrawn was Rs 15.44 lakh crore and returned Rs 15.28 lakh crore.

After the announcement of “Demonetisation” drive the apex bank and prominent leaders came up with several estimates and statements. Here we have enlisted the timeline.

November 9-10, 2016: For two days banks and ATMs remain closed for the further preparations that was required post demonetisation. The Centre had announced that any bank deposits of above Rs 2.5 lakh would face tax and penalty.

November 14, 2016: Government extends deadline for accepting demonetised higher value currency notes for public utility and fuel payments until November 24. As queues get longer at ATMs, Centre decided to increase cash withdrawal limit for account holders to Rs 50,000 a week.

November 16, 2016: SBI said  it collected Rs 1,14,139 crore in deposits in one week.

November 21, 2016: Banks report exchange/deposits from November 10 to November 18 amounted to Rs 5,44,571 crore – Rs 33,006 crore exchanged and Rs 5,11,565 crore deposited, while Rs 1,03,316 were withdrawn.

November 24, 2016: Govt withdraws exchange of demonetised notes and extended deadline for exemptions until December 15 midnight.

November 26, 2016: Cash deposits in Jan Dhan accounts soar sharply by around Rs 27,200 crore to Rs 72,834.72 crore in just 14 days.

November 27, 2016: Since the announcement of scrapping old notes Rs 32,631 cr deposited in post offices.

November 28, 2016: RBI stated banks have received around Rs 8.45 lakh crore worth of scrapped notes.

December 7, 2016: RBI Governor Urjit Patel said demonetisation drive was not done in hurry. Impact of note ban on GDP growth was estimated at only 15 bps. The apex bank informed that Rs 11.55 lakh crore, or 76 per cent of junked notes, have come back into the system

December 13, 2016: RBI Deputy Governor R Gandhi said banks had collected Rs 12.44 lakh crore worth of deposits in banned notes until December 10.

December 19, 2016: RBI said in the remaining days of the month one could make deposits in Rs 500 and Rs 1,000 notes in excess of Rs 5,000 but only once for every account.

January 18, 2017: Governor Patel failed to respond on deposited banknotes. But he confirmed that RBI injected Rs 9.2 lakh crore worth of remonetised notes into the financial system to help replace the banknotes banned in November.

March 10, 2017: RBI’s Macroeconomic Impact of Demonetisation report revealed the precise estimate of currency returned to the banking system was not yet available, adding the reconciliation process was still on.

July 4, 2017: Supreme Court asked the government and RBI to consider granting a window to those who failed to exchange scrapped Rs 500 and Rs 1,000 notes due to genuine reasons.

July 13, 2017: Governor Patel, appeared before the Finance Standing Committee of Parliament and stated that counting of the notes deposited after demonetisation are still underway.

August 2, 2017: Finance Minister Arun Jaitley said RBI is in the process of counting scrapped currency notes and will come out with the final figures once the fake notes detected.

August 11, 2017: Describing the impact of demonetisation on the Indian economy in the Economic Survey-II, Chief Economic Advisor Arvind Subramanian stated there has been a 20 per cent reduction in cash in the financial system.

August 15, 2017: In his Independence Day speech, PM Modi asserted demonetisation of old currency notes led to at least Rs 3 lakh crore of undeclared income coming into the system.

August 16, 2017: Opposition accused PM Modi of contrary stand on black money recovered. It says he first announced an additional Rs 3 lakh crore had been brought into the financial system , and then said about Rs 1,25,000 crore black money was recovered.

August 30, 2017: RBI in its annual report revealed that almost 99% of the currency in circulation had come back into the banking system.

Wefornews Bureau 

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