Nearly all of demonetised currency came back; 99.3% returned, says RBI

30 August, 2018, 09:34 | Author: Lora Ball
  • Government banks are estimated to hold 90% of the total non-performing assets in India’s banking sector

RBI has informed that the Specified Bank Notes Processing has been completed at all centers of the Reserve Bank.

The Congress leader feared that at the end of this exercise, the government may have more than 100 pc of the currency that was demonetised, as the RBI is yet to take into account currency notes in Nepal and Bhutan besides the money blocked in court cases.

The currency recall exercise in November 2016 has had positive impact and government has achieved its objective "quite substantially", even as an RBI report outlined that 99.3 percent of junked notes came back to banks.

"That alone was a loss of Rs 2.25 lakh crore a year", he said.

"The very big task of processing and verification of Specified Bank Notes (SBNs) was successfully achieved", RBI said.

While the actual estimate of fake Indian notes in circulation (FICN) has been hotly debated, the central bank's annual report implies that demonetisation may not have done much to curb the generation of new fake currency.

Of the Rs 15.41 lakh crore worth Rs 500 and Rs 1,000 notes in circulation on November 8, 2016, when the note ban was announced, notes worth Rs 15.31 lakh crore have been returned. "Almost the entire amount came back, which showed that people were not hoarding money in cash". According to the RBI data, 522,783 pieces of counterfeit notes were detected in the banking system in 2017-18. However, small number of notes are still with law enforcement agencies.

More news: Pope Francis Meets Irish Abuse Victims, Expresses 'Shame'

Collateral damage as a result of the rise in printing the notes and other cost was dividend RBI pays to the government.

The share of newly-introduced ₹200 notes in the total value of banknotes in circulation was 2.1 per cent as at end-March 2018. It is a natural process as the GDP grows, payment system grows, currency grows.

Digital transactions have grown, but the RBI found the value of banknotes in circulation had also increased in the past year by 37.7%. There was, however, a 2.1% increase in the volume of banknotes.

"... India's currency to GDP ratio moved up to 10.9 per cent in 2017- 18, returning to being amongst the highest levels of currency usage in peer emerging market economies (EMEs) and advanced economies (AEs) as well".

The annual report, curiously, also provides a glimpse of how attempts at remonetisation over the previous year focused heavily on supplying the new Rs 500 and Rs 200 currency notes.

Asked about reports of fake notes presented to the banks post-demonetisation, Garg said past year in a RBI report it was said, that all the notes were verified and the amount of fake notes was "minuscule and ignorable".



Jose Mourinho storms out of press conference demanding respect
Mourinho has seen his side concede three goals in two consecutive games and has now been at the club for three years. Tonight will signal another potential defensive landmark for United as they prepare to take on Tottenham Hotspur .

Victims in Jacksonville Landing shooting identified
Authorities earlier identified David Katz , a 24-year-old gamer attending the tournament , as the suspect in the shooting . When asked about moving on to the semi-finals, Katz said that he considered himself to be "one of the better players".

US Senator John McCain is dead
John McCain's old political rivals have been paying tribute to the longtime senator after his death at 81 in Arizona on Saturday. Earlier this summer, McCain issued a blistering statement criticising Trump's meeting with Russian President Vladimir Putin .

China slams 'irresponsible' Trump for North Korea claim
It also said it is "seriously concerned about it" and has made "solemn representations to the US side". White House officials did not immediately comment on what prompted Trump to call off Pompeo's trip.

Aguero is the Premier League's best foreign import, says Shearer
He has also only played in three of the last six derbies for various reasons and started neither last season. One was a consolation in a 6-1 hammering, but the other was an iconic self-made volley in a Gunners win.

Verizon slowed down firefighters’ internet during California wildfires: court filing
He prefaced his question to Reyes by saying the throttling and net neutrality connections are "conflated" and "different issues". Instead, a Verizon representative told the county to upgrade to a more expensive package.

‘I don’t want to leave anymore’ - Man Utd star changes his decision
So a hard match". "Up until a couple of weeks ago I would have said this guy is desperate to get out", Nicol said on ESPN . Those words are certainly true and Jose will just have to learn how to juggle both aspects in order to get what he wants.

John McCain dies aged 81 surrounded by his family after cancer battle
Arizona Senator and Republican presidential hopeful John McCain participates candidates debate via satellite from St. McCain distanced himself from the future-president saying in an interview that he disagreed with Trump's comment.

Hundreds gather to remember Mollie Tibbetts
The weeks-long search for her ended Tuesday, when investigators found her body in a corn field. "It should've never happened". Immigration and Customs Enforcement did not respond on Wednesday to questions regarding Rivera's immigration status.

Aretha Franklin Had No Will at Time of Death
Madonna has been accused of accused her of making the VMA's only tribute to the late Aretha Franklin all about herself. The fact remains that without a will, court battles for her assets by creditors or extended family members could ensue.