DeMo digs out no black money; 99% of banned notes return
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In a major embarrassment to the Modi government that demonetised high value currency notes in November last year to curb black money, 99 per cent of the banned currencies have returned to the system, the Reserve Bank of India (RBI) said on Tuesday. Of the Rs 15.44 lakh crore withdrawn with the scrapping of Rs 500 and Rs 1,000 notes, Rs 15.28 lakh crore has come back to the central bank since November 9, 2016. It gives a severe blow to the government’s expectation of getting a huge dividend from the central bank as the report revealed that only about 89 million units or 1.3 per cent of the demonetised Rs 1,000 notes worth Rs 8,900 crore have not come back into the system.

Trends for bank notes in circulation: Stating that the central bank spent Rs 7,965 crore on printing new currency notes in 2016-17, the RBI said the value of banknotes in circulation declined by 20.2 per cent over the year to Rs 13.1 lakh crore as of March-end, 2017. The volume of banknotes, however, increased by 11.1 per cent, mainly due to higher infusion of banknotes of lower denomination in circulation following demonetisation.

In value terms, the share of Rs 500 and above banknotes, which had together accounted for 86.4 per cent of the total value of banknotes in circulation at March-end 2016, stood at 73.4 per cent at March-end 2017. The share of newly introduced `2000 banknotes in the total value of banknotes in circulation was 50.2 per cent at March-end 2017.

In volume terms, Rs 10 and Rs 100 banknotes constituted 62.0 per cent of total banknotes in circulation at March-end 2017 as compared with 53.0 per cent at March-end 2016.

The central bank said 2016-17 was an exceptional year on account of the demonetisation and the gradual replenishment of withdrawn notes by new notes of different denominations.
99 per cent of the banned currencies have returned to the system, the Reserve Bank of India (RBI) said on Tuesday. Trends for bank notes in circulation: Stating that the central bank spent Rs 7,965 crore on printing new currency notes in 2016-17, the RBI said the value of banknotes in circulation declined by 20.2 per cent over the year to Rs 13.1 lakh crore as of March-end, 2017. The volume of banknotes, however, increased by 11.1 per cent, mainly due to higher infusion of banknotes of lower denomination in circulation following demonetisation.

In value terms, the share of Rs 500 and above banknotes, which had together accounted for 86.4 per cent of the total value of banknotes in circulation at March-end 2016, stood at 73.4 per cent at March-end 2017. The share of newly introduced `2000 banknotes in the total value of banknotes in circulation was 50.2 per cent at March-end 2017. In volume terms, Rs 10 and Rs 100 banknotes constituted 62.0 per cent of total banknotes in circulation at March-end 2017.

Columnist: 
Falaknaaz Syed