Published: Fri, August 31, 2018
Markets | By Erika Turner

Chidambaram slams govt after RBI says 99.3% demonetised notes returned

Chidambaram slams govt after RBI says 99.3% demonetised notes returned

The report states, "SBNs (specified banknotes) were received by the Reserve Bank either directly or from bank branches/ post offices through the currency chest mechanism".

The RBI's annual report 2017-18 said that on completion of the process of verification of the scrapped Rs 500 and Rs 1,000 notes, it is found that the total value of the demonetised currency returned to the banks now stands at Rs 15.3 lakh crore, which amounts to 99.3 per cent of the Rs 15.4 lakh crore worth of such notes in circulation on November 8, 2016.

When Indian Prime Minister Narendra Modi announced the replacement of 80 per cent of India's cash in 2016, he sparked a currency crisis that led to huge job losses, stalled growth and hit India's vast informal sector. "The total value of SBNs returned from circulation is Rs 15,31,073 lakh crore", the central bank said.

In a series of tweets, the former finance minister also said RBI figure has suggested that the government had actually demonetised only Rs 13,000 crore and the "country paid a huge price" for it. "That alone was a loss of Rs 2.25 lakh crore a year".

Tewari alleged that over 100 people died standing in queues as a outcome of what he described as a "Mughal Monarch's" attitude towards its people. 15 crore daily wage earners lost livelihood for several weeks.

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Notwithstanding the fact that only over Rs.10,000 crore of demonetised money did not come back to the RBI, government on Wednesday claimed that it has achieved the targets it had set in its decision, including checking black money, counterfeit currency and terror funding while encouraging digital transactions. Thousands of SME units were shut down. Remember who had said that Rs 3 lakh crore will not come back and that will be a gain for the government?

Speaking of the Indian economy, the annual report said that there are upside risks to inflation which requires vigilance.

Sen also mentioned the use of black money, he said that trade and money lending are the commonest ones.

But the move, widely known as demonetisation, badly hurt India's cash-dependent economy and caused tremendous hardship to people forced to line up outside banks before the notes ceased to be legal tender.

The RBI said that the detection of counterfeit Rs 100 notes increased 35 per cent to 239,182 pieces during the said period, compared with 177,195 notes in 2016-17 and 221,447 in 2015-16. "According to the report", In the evolution of monetary aggregates, currency in circulation surpassed its pre-demonetisation level while credit growth revived to double digits from a historic low in the previous year".

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