Demonetisation: Rs 14 lakh crore in old notes are back, only Rs 75,000 crore out

According to information now available with RBI and the government, about Rs 14 lakh crore in demonetised currency have been deposited with banks, so far.

Written by P Vaidyanathan Iyer | New Delhi | Updated: January 10, 2017 6:42 pm
demonetisation, black money, old notes, rs 500 ban, rs 1000 ban, narendra modi, banking system, demonetised currency, black money caught, raid, it raid, reserve bank of india, black money raid, indian express news, india news, latest As on November 8, just before demonetisation, of the approximately Rs 17.50 lakh crore currency in circulation, the Rs 500 and Rs 1,000 notes made up about Rs 15.50 lakh crore, or 88 per cent of the total. (Representational image)

The government is resigned to the prospect of only about Rs 75,000 crore in demonetised Rs 500 and Rs 1,000 notes not returning to the formal banking system, a top official said.

When the decision to scrap these high-denomination notes was taken, the government had estimated that up to Rs 3 lakh crore or almost 20 per cent of the total value of demonetised currency would not return, and be available for spending once the liability is extinguished.

According to information now available with the Reserve Bank of India (RBI) and the government, about Rs 14 lakh crore in demonetised currency have been deposited with banks, so far.

WATCH VIDEO | Who Suggested Demonetisation? Was It Government Or Reserve Bank Of India?

“We also now know for sure that another Rs 50,000 crore in old notes of Rs 500 and Rs 1,000 were already available with banks when Prime Minister Narendra Modi announced the decision to demonetise the high-denomination currency,” the official told The Indian Express.

Government officials also claimed that almost Rs 10 lakh crore in new currency have already been supplied to banks.

To expedite the return to normalcy, the government, nevertheless, sought the RBI’s opinion to know if it could release about Rs 75,000 crore from its own currency reserves.

But the RBI has been of the opinion that the situation would be close to normal in another fortnight or so with almost Rs 2-2.5 lakh crore additional currency, freshly printed, being dispatched to the currency chests of banks.

As on November 8, just before demonetisation, of the approximately Rs 17.50 lakh crore currency in circulation, the Rs 500 and Rs 1,000 notes made up about Rs 15.50 lakh crore, or 88 per cent of the total. With Rs 14.50 lakh crore in Rs 500 and Rs 1,000 notes or 93.5 per cent of the total value of demonetised currency with banks now, the RBI has started the process of counting these to identify fake or counterfeit currency.

“The RBI has about 60 large-sized machines that are calibrated to distinguish the fake and counterfeit notes from the wads of returned currency. But even if they work for 12 hours, these 60 machines are estimated to take 600 days to complete the job,” said another official.

The government is considering a proposal to decentralise the process of counting. “We are looking if banks can be involved to finish the task much earlier,” the official said.

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  1. A
    Abhinav Gour
    Jan 9, 2017 at 9:06 pm
    How much of money was exchanged illegally do they have a record
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      Haren
      Jan 9, 2017 at 12:51 pm
      Okay, one thing is clear for all that corrupt people, that they have to pay their fair share in tax.lt;br/gt;Do you agree in principle that this is good for future or not?lt;br/gt;Atleast one person is doing good and addressing this corrupt practice of black money if he is successfull 80% still it is good instead of 0%.
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        Ather
        Jan 9, 2017 at 2:39 pm
        I am an NRI , I had just 2000 Rs in Old Rs 500 notes, beacuse when I land in India ,it is generally late night, I travel with my kid and so need to cary some cash as my home town is not in the metro where the plane lands and need to still travel 300 Kms before I reach home. Now this money is dead, although it is less than my half a day ry, but it is still leagl money, on which i have paid 45% tax, who gave Modi the right to eat it up??? Now I will not make a special trip to India for exchanging 2000 Rs. I have already made a deal with a local German Antique dealer to buy these from me , I have told him, these will be rare in 20 years as Government will destroy all . So I got my money, but there are millions of NRI who hold some cash and might not return to India in June. Then there are Nepali ,Tibeteian and Sri Lankans who work in India and have savings in Rupees. I know Nepali workes in Uttrakhand who do real hardwork repairing the routes to Badrinath and Kedarnath, they were all forced to sell old notes to local farmers( who are income Tax free) at half of the value. So even thsi 75000 crore is not corruption or Black money.
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          Big b
          Jan 9, 2017 at 4:19 am
          Agree. Bogus plan. Modi Bhakto failed
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            Big b
            Jan 9, 2017 at 4:17 am
            Stupid implementation. They must be hiding and figure would be much more.
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