RBI’s latest report is clinching evidence that demonetisation was a failure

Economy       Rs 13,000 crore – the amount of currency banks did not get back after demonetisation
       
       	        Mahua Venkatesh         29 August 2018

The news was revealed in the Reserve Bank of India's (RBI) annual report, published Wednesday, which indicated an inter-departmental unit has already been formed within the organization to study the "desirability and feasibility to introduce a central bank digital currency". The report also states that the total value of money returned was Rs 15.3 lakh crore against Rs 15.4 lakh crore that was in circulation on Nov 8, 2016.

Modi has said the cash ban was a success because "our intention was to bring all money into the formal banking system and we achieved success in completing the task". The SBNs received were verified, counted and processed in the sophisticated high speed CVPS (currency verification and processing system) for accuracy and genuineness, and shredded and briquetted in the shredding and briquetting system, it said.

About Rs 15.21 lakh crore of the demonetised Rs 15.41 lakh crore in circulation have been returned to banks, says RBI. "The total value of SBNs returned from circulation is Rs 15,31,073 lakh crore", the central bank said. (The) RBI report again proves that demonetisation was a "Modi-made disaster" of epic proportions.

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. Currency notes of higher value are easier to hoard, and can be used to proliferate black money. "Lakhs of jobs were destroyed", Chidambaram said.

"Remember who had said that Rs 3 lakh crore will not come back and that will be a gain for the government?" he said, taking a dig at Modi.

Powell says gradual hikes likely needed if economy stays strong
The Fed has raised the rate seven times since late 2015 and is projected to raise it again two more times this year. A strong economy and robust corporate results have supported investment appetite for equities.

"During 2017-18, as many as 522,783 pieces of counterfeit notes were detected in the banking system, of which 63.9 per cent were detected by banks other than the Reserve Bank", the RBI said.

Making a sharp attack on the Modi government on demonetisation, former Finance Minister P. Chidambaram on Wednesday said the country paid a "huge price" for cancelling what turned out "a small sum" of Rs 13,000 crore.

"Whether demonetisation has failed or not depends on its objective". The government, while announcing demonetisation, had also cited checking counterfeit notes as one of the reasons. This meant just Rs 10,720 crore of the junked currency did not return to the banking system.

The overall notes in circulation added up to Rs 18.03 lakh crore as on March 2018, displaying a growth of 9.9 per cent over March 2016.

Garg said there were benefits in the process with major advantage being induction of newer notes with more security features, "virtually weeding out all the fake currency".

Related News:



Most liked

Wawrinka, Murray back with a bang
The item had more than 4 million views by Monday evening, when Williams beat Magda Linette 6-4, 6-0 in the first round of the U.S. Spaniard David Ferrer retired during the second set of his opening-round match against countryman Rafael Nadal at the U.S.

Google responds to Trump, says no political motive in search results
Trump has long criticized news media coverage of him, frequently using the term fake news to describe critical reports. He wrote, "Google & others are suppressing voices of Conservatives and hiding information and news that is good".

Ryan Giggs: 'Jose Mourinho is the right man for Manchester United'
A furious Mourinho stormed out of his post-match press conference after taking exception to a journalist's line of questioning. Martial is considering the offer because he believes a five-year contract will see him outlast Mourinho , the Times claim.

Elon Musk reignites 'pedo' claims against United Kingdom cave diver
Unsworth had said he was considering taking legal action against Musk. "Sorry pedo guy , you really did ask for it". Musk responded to her post denying that he had cried during the interview.

Pope Francis must resign, says former Vatican ambassador after Cardinal’s sex abuse
McCarrick was accused of sexually harassing and abusing young adult seminarians, as well as sexually abusing two boys decades ago. Among other things, McCarrick has been accused of sexual abuse of seminarians and priests when he was a bishop in New Jersey.

Trump Turns Sessions' Words Against Him in New Blast
Lindsey Graham , a key member of the Senate Judiciary Committee, says it may be time for "a new face" at the Justice Department. So Cornyn said he hopes that Sessions stays the course and that cooler heads prevail. "He's a quintessential Boy Scout".

A year since fleeing, Rohingya mother sees little hope for the future
Almost 700,000 Rohingya, majority Muslims, have been displaced from Rakhine since the military began a crackdown on militants last August.

Australia's foreign minister quits after leadership change World News
She said: "Today I advised the prime minister that I will be resigning from my Cabinet position as minister for foreign affairs". The ALP has already released an ad, launching an attack on new Prime Minister Scott Morrison .

First Gameplay Footage Of Cyberpunk 2077 Is Released Online
The highly anticipated game from CD Project Red, creators of the Witcher series, has had a few cinematic trailers before. Apparently, you will be able to "interact" with the people of Night City (the game's setting) in a variety of ways.

Trump Organization's Chief Financial Officer Granted Immunity
Jerry Falwell Jr., the president of Liberty University and a Trump confidant, shrugged off the legal developments. Cohen pleaded guilty on Tuesday to handling hush money for Mr Trump in violation of campaign finance laws.

Islamic State Leader in Afghanistan Killed in Raid
Provincial governor's spokesman Attaullah Khogyani confirmed the leader's death, also citing a joint operation involving strikes. The agency also said a large number of weapons, ammunition and explosives were destroyed by the air attacks.

Hawaii | Residents brace themselves as hurricane strengthens
Hawaii Island is under a tropical storm warning as Lane remains nearly stationary about 145 miles west/southwest of Kailua-Kona. On the Big Island , where a hurricane warning was earlier issued by the NWS, more than 12in (30cm) of rain fell on Thursday.

Manchester City’s October trip to Tottenham likely to be delayed a day
Despite failing to make any signings Tottenham stuck to their squad, not selling any first team members. We want to win everything. "This team is reaching its peak now".

Trump Organization executive Allen Weisselberg receives immunity deal
The Manafort charges stem nearly completely from his personal businesses but they came to light after he went to work for Trump . The AP can not say whether the documents were destroyed or simply were moved to a location known to fewer people.

Red Bull set to decide on Pierre Gasly replacement
If he could be in a competitive vehicle , I'm sure they would prefer him to be staying than pursuing his Triple Crown. By the age of 18, Verstappen became the youngest driver to win an F1 race and qualify in the top two positions.