Wasteful drama : 99% of demonetised notes returned to banks

The Reserve Bank of India in its annual report says that Rs. 15.28 lakh crore or 99 percent of Rs. 15.44 lakh crore of banned notes have been returned to the central bank between government’s demonetisation date and 30 June 2017.

So where is the enormous black money Modi Govt sought to clampdown, asks leaders in a chorus across parties.

The central bank’s annual report dated 30 August says, only a fraction of the currency was left out of the system after the unprecedented ban and that the exercise aimed at corruption and black money cost the govt Rs 8000 crore.

A collateral damage because of rise in printing and other costs is “dividend RBI pays to the government”, taunts the central bank’s report.

The RBI spent Rs 7,965 crore on printing new Rs. 500 and Rs 2000 and other denomination notes, twice the expenditure than previous year, according to the report.

Opposition Congress was quick to react saying PM must apologise for lying to the nation.

In a series of tweets, former Finance Minister P Chidambaram said the country paid a “huge price” for demonetising what turned out to be “a small sum”.

He elaborated saying for Rs 13,000 crore which did not come back to banks the nation lost Rs 2.25 lakh crore of GDP, crores of jobs and over a hundred lives.”

Regarding the elusive bulk of Rs. 13,000 crore, Chidambaram said they might be in Bhutan, Nepal, lost or destroyed.

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