RBI Claims : Nearly 99.3% of Demonetized Money has been Subsidized

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RBI Claims Nearly 99.3% of Demonetized Money has been Subsidize
RBI Claims Nearly 99.3% of Demonetized Money has been Subsidize

Around 99.3 percent of India’s banned currency during the period of demonetization in November 2016 has returned back to Reserve Bank of India, according to the central bank’s annual report for 2017-18.

The accomplishment report comes after almost two years after the demonetization was announced on November 8, 2016.

“The total value of SBNs (Specified Bank Notes) in circulation as on November 8, 2016, post verification and reconciliation, was Rs 15,417.93 billion (Rs 15.44 lakh crore). The total value of SBNs returned from circulation is Rs 15,310.73 billion (Rs 15.31 lakh crore),” As per RBI’s annual report.

the Report also stated that the processing of SBNs (Specified Bank Notes) has since been completed at all centers of the Reserve Bank.

The SBNs received were verified, counted and processed in the sophisticated high-speed CVPS for genuineness and accuracy and shredded and briquetted in the shredding and briquetting system.

The processing capacity was increased by resorting to night shifts (along with day shifts), working for 6 days a week, utilizing 8 additional machines available with commercial banks and taking 7 machines on lease from vendors, the banking regulator said.

New currency in circulation

The impact of demonetization had plunged reserve money (RM) growth into contraction till November 10, 2017. Between November 9, 2016 – the effective date of demonetization – and December 31, 2016, the Reserve Bank pumped in 23.8 billion pieces of banknotes into circulation aggregating Rs 5,540 billion in value.

The value of banknotes in circulation increased by 37.7 percent over the year to Rs 18,037 billion (Rs 18.03 lakh crore) as at end-March 2018. The volume of banknotes increased by 2.1 percent.

In value terms, the share of Rs 500 and Rs 2,000 banknotes, which had together accounted for 72.7 percent of the total value of banknotes in circulation at March-end 2017, increased to 80.2 percent as at March-end 2018.

The share of newly introduced Rs 200 banknotes in the total value of banknotes in circulation was 2.1 percent as at end-March 2018.

Counterfeit Notes

Compared to the previous year, there was an increase of 35 percent in counterfeit notes detected in the denomination of Rs 100, while there was a noticeable increase of 154.3 percent in counterfeit notes detected in the denomination of Rs 50.

In new series of banknotes in the denominations of Rs 500 and Rs 2000, counterfeit notes detected during 2017-18 were 9,892 and 17,929 as against 199 and 638, respectively, during the previous year.

Was demonetization really a success or the government is fooling us by showing false evidence?

Let us know in the comment section below.

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