Nearly two years after the much-hyped demonetisation on November 8, 2016, for flushing out black money, exactly 99.3 per cent of the banned currency is back with the Reserve Bank of India, according to the central bank’s annual report for 2017-18.
According to economists, a grace of up to 10 per cent can be given, though it is a mere 0.8 per cent in this case, posing questions on whether there were any benefits from the demonetsation move. Incidentally, after all the hype that was created after the move was initiated, there is grim silence now.
“The total value of Specified Bank Notes (SBN) in circulation as on November 8, 2016, post verification and reconciliation, was Rs 15,417.93 billion (Rs 15.44 lakh crore). The total value of SBNs returned from circulation is Rs 15,310.73 billion (Rs 15.31 lakh crore),” the report said.
The processing of SBNs had since been completed at all RBI centres and was “verified, counted and processed in the sophisticated high-speed CVPS for accuracy and genuineness and shredded and briquetted in the shredding and briquetting system”, it added.
The report admits that the impact of demonetisation had plunged reserve money growth into contraction till November 10, 2017. Between November 9, 2016 – the effective date of demonetisation – and December 31, 2016, the Reserve Bank pumped in 23.8 billion pieces of banknotes into circulation aggregating Rs 5,540 billion in value.
The value of banknotes in circulation increased by 37.7 per cent over the year to Rs 18,037 billion (Rs 18.03 lakh crore) as at end-March 2018. The volume of banknotes increased by 2.1 per cent.
In value terms, the share of Rs 500 and Rs 2,000 banknotes, which had together accounted for 72.7 per cent of the total value of banknotes in circulation at March-end 2017, increased to 80.2 per cent as at March-end 2018.
The share of newly introduced Rs 200 banknotes in the total value of banknotes in circulation was 2.1 per cent at the end of March 2018.
In comparison to the previous year, there was an increase of 35 per cent in counterfeit notes in the denomination of Rs 100, while there was a noticeable increase of 154.3 per cent in counterfeit notes in the Rs 50 denomination.
In new series of banknotes in the denominations of Rs 500 and Rs 2,000, counterfeit notes detected in 2017-18 were 9,892 and 17,929 as against 199 and 638, respectively, during the previous year, the report adds.