Indians turned in nearly all the currency notes banned in 2016: RBI

Indians turned in nearly all the currency notes banned in 2016: RBI

Indians turned in nearly all the currency notes banned in 2016: RBI

The "humungous task of processing and verification of specified bank notes (SBNs) was successfully achieved", it said.

After demonetisation, Rs 500 notes were reintroduced, Rs 1,000 notes were scrapped and brand new Rs 2,000 notes were introduced.

(The) RBI report again proves that demonetisation was a "Modi-made disaster" of epic proportions.

The total SBNs returned from circulation is 15310.73 Billion.

The RBI, in its previous annual report released, in August 2017 had stated that Rs 15.28 lakh crore, or 99 per cent of the demonetised currencies totally worth Rs 15.44 lakh crore, had returned to the banks by 30 June 2017. The thinking behind this theory was that if a certain amount of the demonetised currency didn't come back into the system - if it was dumped in a river or burnt to ashes because its owners were afraid of being caught with black money - it would reduce the RBI's liabilities.

Almost 99% of the ₹500 and ₹1000 that were demonetised on the night of November 8, 2016, have now returned to the banks, says the Reserve Bank of India (RBI) in its annual report, released on Wednesday.

People were given several weeks to exchange their demonetised currency for new notes at banks. "Swadeshi" economist S. Gurumurthy, who was recently appointed to the RBI's board, called it a "much-needed attack on excessive liquidity", while other government officials decried the high proportion of Rs 500 and Rs 1,000 notes.

The process of verifying banned notes involved working in two shifts under strenuous conditions, maintaining detailed records and planning effectively without compromising on other functions of currency management.

In value terms, the share of Rs 500 and Rs 2000 banknotes, which had together accounted for 72.7 per cent of the total value of banknotes in circulation at end-March 2017, increased to 80.2 per cent as at end-March 2018. Counterfeiters had also shifted to recreating smaller notes and were now able to replicate en masse the new 500 and 2,000-rupee notes, it said.

"Compared to the previous year, there was an increase of 35 per cent in counterfeit notes detected in the denomination of Rs 100, while there was a noticeable increase of 154.3 per cent in counterfeit notes detected in the denomination of Rs 50", RBI said adding that counterfeit notes detected in the new Rs 500 and Rs 2,000 notes during 2017-18 were 9,892 and 17,929 as against 199 and 638, respectively, during the previous year. At that time the demonised notes from Nepal and Bhutan were also yet to be counted.

"It has helped India move faster towards a digital economy".

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