99.3% of demonetised currency returned to banks: RBI

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

The party said the return of nearly all the junked notes meant that the government had failed to unearth any black money, check terror financing and eradicate fake currency as promised by Modi while announcing noteban.

The total value of SBNs returned to banks is Rs 15.31 trillion, RBI said in its 2017-18 annual report.

The Reserve Bank of India finally revealed the quantum of notes that have returned into the system post the Demonetization. It is the job of the income tax department and various investigative agencies to determine how much of it is "black" or illegally obtained and which depositors need to be examined for trying to cheat the system. It was supposed to flush out black money and end corruption.

Garg said that the major advantage of demonetisation was that new notes have more security features.

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

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"So, government and RBI actually demonetised only Rs 13,000 crore and the country paid a huge price". The share of Rs 2,000 notes by value has declined to 37.3% as on March 2018 as compared to 50.2% a year ago. Growth has since rebounded to 7.7 percent in the quarter ended March 2018.

The old notes of 500-rupee and 1,000-rupee denomination ceased to be legal tender from December 31, 2016.

The number of fake notes of Rs 2,000 jumped to 17,929 in fiscal 2018 - a 2710 per cent increase from 638 pieces in 2016-17.

While The Wire has over the last eighteen months reported and analysed how India's currency-in-circulation (CiC) and currency-to-GDP ratio has not changed drastically after demonetisation, the RBI's annual report provides further proof of how little things have changed.

India's currency-to-GDP ratio is also slowly on its way back to pre-demonetisation levels.

"Going forward, the up-tick in credit growth is likely to be supported by the progress" being made under the insolvency code to help address stress on balance sheets of both corporates and banks, recapitalization of public sector banks, and a positive outlook on the economy, the RBI said. More than 100 lives were lost in the panic to exchange old notes for new ones, millions of daily-wage earners lost their livelihood for several weeks, thousands of small and medium enterprises were shut down and many jobs were destroyed, he said via Twitter. At that time the demonised notes from Nepal and Bhutan were also yet to be counted.