99% of Scrapped Notes Back in System: RBI

99% of Scrapped Notes Back in System: RBI

This amounts to 1.3 per cent of the Rs 1,000 notes in circulation before the demonetisation announcement on November 8, 2016.

On November 8 past year, when Prime Minister Narendra Modi declared the Rs 1,000 and Rs 500 notes as invalid, there were about 6,858 million Rs 1,000 notes worth Rs 6.86 lakh crore in circulation.

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Chidambaram also said 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.

The design of the new currency note is being now finalized, and printing press in Mysore and Salboni will start printing them once sufficient amount of Rs 200 currency notes have been printed there. Currently, these two high-denomination currency notes make up for more than 70% of all currency in circulation by value, RBI data showed. According to the RBI, "notes in circulation" are all notes held outside Reserve Bank - that is by the public, banks treasuries and so on. The share of the newly-introduced Rs 2,000 banknotes in the total value of banknotes in circulation was 50.2 per cent at end-March 2017. Following the move, a new Rs 2000 note and a new version of Rs 500 note was released. But expectations of various quarters that sizable portion of the demonetised currency won't return has not been fulfilled. "Was demonetisation a scheme created to convert black money into white?" he asked. Of this, 1000-rupee notes made up about 44% and 500-rupee notes 56% approximately. However, the RBI pointed out that these figures are provisional and could change after the verification of numerical accuracy and authenticity of the deposited notes. Rs 16,000 cr out of demonetised notes of Rs 15,44,000 cr did not come back to RBI. The RBI has put IDBI Bank, Indian Overseas Bank, UCO Bank under watch and had asked them to stay off risky assets so that their financial health is not stressed further. The value of the SBNs received by the currency chests has been credited to the banks' account on "said to contain basis". "On November 4, 2016, CIC had scaled an all-time high of Rs 18 trillion taking RM (Reserve Money) to a peak of Rs 22.5 trillion", the report said.

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