Wednesday, August 30, 2017

[IAC#RG] RBI confesses that demonetisation failed

The Reserve Bank of India (RBI) Wednesday disclosed that almost 99 per cent of Rs 500 and Rs 1,000 currency notes which were withdrawn from circulation on November 8, 2016 has returned to the central bank, confirming what the government's critics had been pointing out about the weak economic rationale for demonetisation. This also raises questions about the overall gains and the impact on the economy, especially the informal sector, because of the disruption it caused.

Nine months after Prime Minister Narendra Modi announced demonetisation of Rs 500 and Rs 1,000 notes, the RBI finally revealed in its annual report that notes worth Rs 15.28 lakh crore were deposited by people as on June 30, 2017. This indicates that notes worth only Rs 16,000 crore were not returned since the value of Rs 500 and Rs 1,000 notes in circulation was Rs 15.44 lakh crore on the day demonetisation was announced.

No comments:

Post a Comment