Demonetisation: RBI says 99% banned notes are back; where is the black money?

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RBI's annual report for 2016- 17 on Wednesday revealed that all but 1.4 percent of the scrapped Rs 1,000 notes have returned to the banking system.
99 percent of the demonetised currency has found its way back to the banking system. Only a little over Rs 16,000 crore of Rs 15.44 lakh crore was not returned.



Opposition parties on Wednesday slammed the government over note-ban terming the move as "disaster" and "anti-national" while former finance minister P Chidambaram used Reserve Bank data to lash out at the central bank saying "Shame on RBI" as 99 percent junked currency has returned.

Congress vice president Rahul Gandhi tweeted that the move was a "colossal disaster" that "cost innocent lives" and "ruined" the economy. "Will the PM own up," he asked in the tweet.

The RBI transferred just Rs 30,659 crore as dividend to the government for the year ended June 2017, less than half the previous year's levels. Last year, it transferred Rs 65,876 crore to the government. This year, the expectation was Rs 74,901 crore will flow into the government exchequer, partly due to the demonetisation gains.

Chidambaram also stated that the economists behind the demonetisation move "deserve Nobel prize" as the RBI gained Rs 16,000 crore, but lost Rs 21,000 crore in printing new notes.

"It was an ill-thought decision which created financial anarchy in the country. Tens and millions of jobs were lost. Hardships were inflicted upon the poor people, farmers, workers and housewives of the country. Now the prime minister should explain where is that black money?," he asked.

According to sources the government would shortly start printing the new Rs 1,000 note to bridge the yawning gap between the existing Rs 500 and Rs 2,000 notes.

Preparations for the design and the paper for printing the Rs 1,000 note are in full swing. The new currency note with enhanced security features could be out as early as December 2017, said a person close to the development.

The printing presses at Mysore and Salboni are getting ready to print the new Rs 1,000 notes, sources said

Printing of Rs 2,000 notes stopped six months ago. Now Rs 200 notes are getting printed at these presses. Next in line are Rs 1,000 notes