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No information on black money removed by demonetisation: RBI to Parliamentary panel

The central bank did not give any direct reply on adverse impact of invalidating higher denomination currency on the informal and unorganised sector, as also about the GDP loss. It said the deceleration in overall economic growth figures for 2016-17 had begun "much before demonetisation" due to weakness in industrial and services sector.

By: Express Web Desk | New Delhi | Published: September 4, 2017 8:35 pm
rbi, reserve bank of India, rbi report on demonetisation, rbi note ban, rbi currency verification,  Reserve Bank of India said it has “no information” whether demonetisation is being planned to be implemented at regular intervals.

Days after its report on demonetisation, the Reserve Bank of India told a parliamentary panel that it has “no information” on how much black money has been extinguished or about unaccounted cash legitimised through exchange of old currency after the note ban exercise was conducted.

The central bank, which is under fire from the opposition for note ban and delay in disclosing figures, stated that it has “no information” whether demonetisation is being planned to be implemented at regular intervals. Last week in its annual report, the RBI finally made public the details of the junked notes that have come back into the system putting the figure at Rs 15,280 crore. The same figure has now been shared, “subject to future corrections based on verification process” with the Parliamentary Standing Committee on Finance.

Replying to the queries from the panel, RBI said that the verification for authenticity and numerical accuracy are still on, while some of the specified bank notes (old Rs 500/1,000 notes) which were accepted by banks and post offices are still lying in currency chests. It also said that the completion of the verification process is “going on in full swing” with most RBI offices working in double shifts and with the help of high-end verification machines, but will take time because of the large volume of notes involved.

“Till such time, these notes are processed by the RBI, their numerical accuracy and authenticity, only in estimation of SBNs received back is possible. Subject to future correction, based on verification process when completed, the estimated value of SBNs received as on June 30 is Rs 15.28 trillion,” the RBI said in its written reply.

The central bank did not give any direct reply on adverse impact of invalidating higher denomination currency on the informal and unorganised sector, as also about the GDP loss. The RBI said the deceleration in overall economic growth figures for 2016-17 had begun “much before demonetisation” due to weakness in industrial and services sector.

Last week, several members of the panel had sought redrafting of its draft report on demonetisation as the RBI at that time had not provided some crucial details including on the quantum of junked Rs 500/1,000 notes. The acceptance of the report was deferred as member MPs across party lines including BJD MP Bhartruhari Mahtab, SP MP Naresh Agrawal and BJP MP Nishikant had said that the panel’s report on demonetisation needed to be “redrafted” while some of them stated that it “lacks punch”.

In an unprecedented move, the government on November 8 last year, banned old Rs 500 and Rs 1,000 notes in an attempt to weed out black money in the country. The old notes were allowed to be deposited in banks, with unusual deposits coming under income tax scrutiny. In its annual report for 2016-17, the RBI had disclosed that all but about 1 per cent of the scrapped currency notes have come back into the system.

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    pradeep
    Oct 4, 2017 at 7:37 pm
    There was never black money anywhere.there was fake currency .but after democratisation all that has become bank deposits in crores of accounts which a few people are verifying.
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    1. B
      Balaji
      Sep 5, 2017 at 9:05 am
      Demonetisation is declared with good intention. No matter it does not achieve the expected result. But it is sure it did not create the way for further corruption as all the Govt Policy in our country is meant to generate more corruption. The more the policy The Govt does the more corruption we see. On that count it is successful.
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      1. A
        ak dev
        Sep 5, 2017 at 4:06 am
        Information on black money is in Pappu's a ss that smells foul.
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        1. S
          supreme court okayed india war via loudspeakers ji
          Sep 4, 2017 at 10:10 pm
          BAN ALL LOUDSPEAKERS, ALLOVER INDIA, PERIOD, NO EXCEPTIONS. LOUDSPEAKERS ARE BANNED IN ALL DEVELOPED NATIONS, USA, EUROPE ETC. BCOZ MAXIMUM USE OF LOUDSPEAKER WARS JEHHAAD, IS ILLEGAL ABUSE, BY LAKHS UPON LAKHS OF MAJJIDS, REPEATEDLY FROM 3 TO 8 TIMES, 24/7/365/FOREVER. THIS LOUDSPEAKER JEHHAAD, PROPAGANDA OF ARRABIC MANTRAS SCREAMING, THIS IS CREATING HAVOC IN THE PSYCHIATRY OF MILLIONS UPON MIPPIONS, CRORES HAVE ALREADY CONVERTED. CRORES MORE HINDUS HAVE PSYCHOLOGICALLY MEMORIZED THE ARRABIC MANTRAS, AND GIRLS , WOMEN ARE EASY PREY TO THE RELATED JEHHAAD IE LOVE JEHHAAD. EVEN NEWBORNS, OLD AGED DYING HINDUS XTIANS SIKHS ARE SUFFERING THIS. ALL BCOZ OF SUPREME COURT JUDGMENT, ALLOWING LOUDSPEAKER JEHHAAD. WHO IN SC GAVE ORDER FOR LOUDSPEAKER JEHHAAD. WHAT THEIR AGENDA IS. WHY SC IS BLIND TO THE SILENT SUFFERINGS OF THE SILENT HINDU MILLIONS, WHO HAVE NO CLUE OF THIS PSYCHRIATRIC ATTACK ON THEIR PSYCHOLOGIES, BY LOUDSPEAKER JEHHAAD, INDOCTRINATION OF ARRABIC MANTRAS IN HINDU MINDS
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          1. S
            Sunil
            Sep 5, 2017 at 12:23 am
            What about the noise pollution because of the garish drum beats at 11 in the night by those going for Ganpati Nimanjan (Visarjan)?
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              Whats in a name
              Sep 5, 2017 at 3:20 am
              ban loudspeaker Modi
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            2. Vijay Kumar Kunthipuram
              Sep 4, 2017 at 10:06 pm
              Whatever the argument may be about demonetization, it is an open secret that it did not bring the expected results.It only marred the life of middle class lower middle class people. This is the actual truth.
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