Kolkata: Prime Minister Narendra Modi on November 8 last year debarred Rs 500 and Rs 1,000 notes. The next few days saw long queues at bank branches to deposit and exchange the demonetised banknotes. With people facing inconvenience, the government’s decision to ban old currency notes and handling of the whole process came under scrutiny.
Reserve Bank of India (RBI) Governor Urjit Patel appeared before a probing parliamentary panel several times, but the total number of demonetised currency notes deposited in banks remained elusive for long. According to RBI’s new released data, Modi’s demonetization is totally ineffective. So, what will be the punishment for Modi?
On Nov13, PM Modi announced in Goa that if note ban will be fail then he would accept punishment. The RBI in its annual report today revealed that 8.9 crore pieces of Rs. 1,000 notes, worth Rs. 8,900 crore, did not return as of March 2017. The central bank also said 632.6 crore pieces of Rs. 1,000 notes were in circulation in March 2016. As per the release, almost all Rs 1,000 notes in circulation have returned, barring 89 million pieces.
Here are some other highlights from RBI’s annual report:
The value of banknotes in circulation declined by 20.2 per cent over the year to Rs. 13.1 lakh crore as of end-March 2017.
The share of newly introduced Rs. 2000 banknotes in the total value of banknotes in circulation was 50.2 per cent at end-March 2017.
RBI says 7.62 lakh pieces of counterfeit currency notes were detected in FY17 as against 6.32 lakh in FY16
Cost of printing notes doubles to Rs. 7,965 crore in FY17 from Rs. 3,421 crore in FY16 on account of new currency printing
Now the big question rises that where did all black money? Where it goes? Is It Modi’s new tactics to convert the black money into white? Demonetisation had a pronounced and rather broad-based adverse effect on the economy in the fourth quarter of last fiscal, official data showed, even as the agriculture and mining sectors held up and consumption, despite a sequential slowdown, was still robust. In 2017 the GDP rate is 6.1. Economist Debnarayan Sarakar said that this demonetization is totally failed.