99 percent demonetised notes make their way to the Banking system: RBI annual report

Utkal Reporter Bureau|31 August 2017

 

Nearly 99 percent of the Indian currency notes of 500 and 1000, became invalid in November last year have come back to RBI.  The Central Bank in its annual report for 2016-17 on Wednesday has mentioned it.

The report reads, “Subject to future corrections based on the verification process when completed, the estimated value of Specified Bank Notes (SBNs) received as on June 30, 2017, is Rs 15.28 lakh crore,”

Value of the currency notes of 500 and 1000 in circulation before they ceased to be legitimate from Novembet 9, 2016 was estimated Rs 15.44 lakh crore. Thus Rs 16000 cr of 500 and 1000 rupees note did not return to the banking system.

The entire scrapped currency note, except one percent of that made it to the banking system inspite of Modi government’s ambitious exrcise to see the unaccounted ones die outside the system. The government was hopefull of checking about Rs 3 lakh crores of unaccounted money there.

On the front of fake currency, the move of demonetisation leaves little for the government to boast for its adventure. The RBI report says 317567 pieces of Rs 500(Gandhi) series fake notes were detected in 2016-17. Similarly 256324 pieces of Rs 1000 fake notes were detected last year.  This registers a huge increase in fake note detetion yet it estimates only Rs 42 crore.

RBI has spent Rs 7965 cr in the currency printing head in 2016-17 against Rs 34721cr in the previous year.

Banks have filed 361214 cases of suspecious transactions in financial year of demonitisation. This registers a huge hike as compared to 61361cases registered the year before.

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This is a positive aspect of the demonetisation exercise. The other one can be mentioned is the significant drop in the currency notes in circulation. The is claimed to be 17 percent.

The RBI said“In value terms, the share of Rs 500 and above banknotes, which had together accounted for 86.4% of the total value of banknotes in circulation at end-March 2016, stood at 73.4% at end-March 2017. The share of newly introduced Rs 2,000 banknotes in the total value of banknotes in circulation was 50.2% at end-March 2017,”

 

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