Banned Notes
Deposited Reach 84.3% of Official Issue
· Surrendered Notes may
Exceed Total Notes Issued (with 21 more Days left for Surrender)
· Little “Black Money”
Unearthed, A Case of Much Ado over Nothing?
· Recycling of Notes Leaked
from Bank Vaults Alleged
The
government expects the entire money in circulation in the form of currency
notes of Rs 500 and Rs 1,000 so that the tax authority can trace the
transactions and tax black money hoarders, Revenue Secretary, Hasmukh Adhia
said on 6 Dec. The Government has officially admitted that there is no chance
of a windfall gain from demonetised currency remaining outside the banking
system.
The
SBI had estimated that Rs 2.5 lakh crore may not return to the system. Leading
to speculation of substantial gains to the government considering that this
would lower the liabilities of the RBI.
An estimated Rs 12.6 lakh crore has been deposited in
banks so far and if the all the high-value notes in circulation comes back to
the banking system, the exercise of demonetisation spread over 50 days is
futile.
The Centre for Monitoring the Indian Economy or CMIE,
an economic forecasting agency, has pegged the cost of demonetisation for 50
days from November 8 to Dec 30 at Rs 1,28,000 crore which includes loss of
business or sales, cost to households, the expenses for printing fresh currency
notes to the government and the RBI besides for banks.
“Do you think that by simply depositing money in the
bank account makes black money into white? It doesn’t. It will become white
when we charge taxes, when the Income Tax department can reach up to them by
issuing a notice and questioning them…
Adhia said that government agencies will also take
action against bankers and others who are colluding with black money hoarders
to illegally convert the abolished currency into legal tender.
Quantity
and Value of SBN Issue before Demonetisation of 8 Nov 2016
|
Notes (Rs.) |
Qty |
Share |
Value (Rs.) |
Share |
|
500 |
1650 |
71.1% |
825000 |
55% |
|
1000 |
670 |
28.9 |
670000 |
45% |
|
Total |
2320 |
|
1495000 |
|
SBN
= Specified Bank Note of Rs. 500 and Rs. 1000
Demonetised by GoI Notification.
Source:
ABS Database